Singapore Customs seizes 3.24 million packets of contraband cigarettes in first 11 months of 2025

SINGAPORE: The volume of contraband cigarettes seized by Singapore Customs in the first 11 months of 2025 remained broadly comparable to the same period last year, underscoring sustained demand for illicit tobacco products despite stepped-up enforcement efforts.

Between January and November 2025, authorities seized 3.24 million packets of duty-unpaid cigarettes, marginally fewer than the 3.26 million packets uncovered during the corresponding period in 2024, Singapore Customs told The Straits Times.

While the year-on-year figures showed a slight decrease, both years marked a sharp increase from the roughly two million packets seized annually between 2020 and 2022, pointing to a longer-term upward trend in the illicit cigarette trade.

Price Gap Continues to Fuel Demand

A market analyst, who declined to be named, said demand for contraband cigarettes remains strong due to the significant price disparity between legal and illegal products.

In Singapore, a carton of 10 packets of premium cigarettes can cost about $160, while an equivalent carton of contraband cigarettes typically sells for around $60.

Touts who source such cartons from Indonesia for between $20 and $25 can earn profits of $40 or more per carton.

The high retail price of legal cigarettes has been attributed largely to a 15 per cent increase in tobacco excise duties implemented in February 2023, which the Government said could generate about $100 million in additional annual revenue.

While the move was intended to curb tobacco consumption, the Tobacco Association (Singapore) said the duty hike, coupled with escalating living costs and a subdued market outlook, may be pushing consumers towards cheaper illegal alternatives.

The association added that recent enforcement efforts against the black market were commendable, noting that seizure figures reflect both the elusiveness of illegal supply chains and continued consumer demand for contraband cigarettes.

Largest Inland Seizure Recorded in Late 2025

On 30 Nov and 1 Dec, Singapore Customs made its largest inland seizure of the year, uncovering 17,279 cartons of duty-unpaid cigarettes.

The total duty and goods and services tax (GST) evaded exceeded $1.87 million.

Inland hauls refer to seizures made away from border checkpoints. Most smuggling attempts are detected at land borders, where cigarettes are often concealed among food products or hidden within false compartments in vehicles.

Shift from Vaping to Contraband Cigarettes Among Students

At least one institute of higher learning told ST that it has observed an increase in students caught smoking contraband cigarettes on campus.

A discipline master, who spoke on condition of anonymity, said that since September, such cases have overtaken vaping-related offences.

He noted a sharp decline in vaping cases alongside a significant rise in students smoking illegal cigarettes.

Previously, the institute handled an average of about 200 cases a month—mostly related to vaping—between October 2022 and early 2023, with students caught using e-vaporisers both on and off campus.

Authorities enhanced penalties for vaping-related offences from 1 September, with fines raised to $500 for those under 18 and $700 for adults. Recalcitrant offenders may also be required to undergo rehabilitation.

Experts suggested that tougher vaping penalties may have prompted some users to switch to contraband cigarettes, calling for stronger enforcement to disrupt supply.

Regional and Enforcement Challenges Persist

Chris Humphrey, executive director of the EU-ASEAN Business Council, said more coordinated action is needed across ASEAN, noting that governments in the region lose an estimated US$4 billion (S$5.2 billion) annually to illicit tobacco.

“When there is demand, criminal groups will find some way to provide the supply,” he said, adding that tougher penalties alone are unlikely to eliminate the problem.

Singapore Customs said it adopts a whole-of-government approach, working closely with partner agencies through intelligence sharing and coordinated operations.

A Customs spokesman said these efforts have led to the seizure of more than 180 tonnes of duty-unpaid cigarettes over the past three years.

Under the Customs Act and the GST Act, offences involving duty-unpaid goods carry severe penalties, including fines of up to 40 times the amount of duty and GST evaded, jail terms of up to six years, and the forfeiture of vehicles used in committing such offences.