The Excise Department
ASEAN excise tax
Excise tax detail devided by ASEAN countries
Comparison of Excise Tax in ASEAN Countries
The Inland Revenue Authority of Singapore (IRAS) is the main tax administrator to the Government. IRAS collects taxes that account for more than 70% of the Government's Operating Revenue that supports the Government's economic and social programmes to achieve quality growth and an inclusive society. IRAS also represents the Government in tax treaty negotiations, drafts tax legislations and provides advice on property valuation to the Government.
IRAS is responsible for collecting income tax, property tax, goods & services tax, estate duty (for deaths occurring before 15 Feb 2008), betting taxes and stamp duty. Collection from these taxes accounts for 72.9% of the government operating revenue for the financial year 2013/14.
The collection of excise tax in Singapore has three purposes as follows:- To control the quantity of vehicles in order to manage the public transportation system
- To control goods that present a hazard to human health
- To control goods that present a hazard to the environment and generate pollution
Taxpayers
- In the case of goods produced within the country: producers or industrial operators
- In the case of service businesses: service operators
Goods and Services Subject to Excise Tax
Goods and services tax (GST) is a tax on domestic consumption. The tax is paid when money is spent on goods or services, including imports. It is a multi-stage tax which is collected at every stage of the production and distribution chain. The Singaporean government undertakes the collection of excise tax from the goods and services listed below:
- Motor Vehicles
- Tobacco
- Alcoholic Beverages
- Petroleum and petroleum products
- Entertainment services: pubs, lounges and karaoke
- Casinos
Tax Points and Tax Base
Type of Goods |
Tax Point |
Tax Base |
Motor vehicles |
Customs Entry Point |
CIF |
Tobacco |
Customs Entry Point |
Per unit |
Alcoholic Beverages |
Customs Entry Point |
Per unit |
Petroleum and petroleum products |
Customs Entry Point |
Per unit |
Entertainment services: pubs, lounges and karaoke |
Service Fee Payment Point |
Not stipulated |
Casinos |
Prize Money Point |
Prize |
Example of Tax calculation in Singapore
1) Intoxicating liquors
Duties payable = Total quantity in litres x Customs and/or excise duty rate x Percentage of alcoholic strength
Example :Company A imports 75 litres of stout with alcoholic strength of 5%. Assuming the customs and Excise duties for stout is S$16 and S$60 per litre of alcohol respectively:
As both customs and excise duties are levied on the import of stout,
the duties payable = 75 x (S$16 + 60) x 5% = S$285
2) Tobacco products
a) All tobacco products except cigarettes
Duties payable = Total weight (in kilogrammes) x Excise duty rate
Example : Company A imports 100 kilogrammes (kgm) of tobacco stems. Assuming the excise duty for tobacco stems is S$352 per kilogramme:
Duties payable = 100 x S$352 = S$35,200
b) Cigarettes
Duties payable = Total number of sticks x Weight of individual sticks (every gramme or part there of) x Excise duty rate
Example : Company A imports 100 sticks of cigarettes weighing 1.5 grammes each. Assuming the excise duty for cigarettes is 38.8 cents for every gramme or part there of each stick: Since the weight of each cigarette is between 1 and 2 grammes, the weight to be taken to calculate the duties payable is 2 grammes.
Hence, duties payable = 100 x 2 x S$0.388 = S$77.60
3) Motor vehicles
Duties payable = Customs value x Excise duty rate
Example : Company A imports a motor car that was bought at S$100,000 on Free on Board (FOB) incoterms. The overseas freight, handling and insurance charges to ship the car to Singapore cost S$1,000. Assuming the excise duty for motor cars is 20% of the customs value:
Customs value of car = S$101,000Duties payable = S$101,000 x 20% = S$20,200
4) Petroleum
Duties payable = Total weight x Excise duty rate
Example : Company A imports 100 litres of unleaded motor spirit of RON 97 and above. Assuming the excise duty for unleaded motor spirit of RON 97 and above is S$7.10 per dal (1 dal = 10 litres):
Duties payable = S$7.10 x 10 = S$71
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