Update May 2013
Total tax rate as a % of Retail Price : 67 %
Impact on Revenue
The most popular brand in Brunei is Marlboro Gold Ks costs USD$ 6.16 per pack.
With a population of just more than 400,000 people, Brunei Darussalam has no tobacco growers or manufacturers. All tobacco products are imported, and the Ministry of Health, as the Tobacco License Authority, requires licenses for all importers and retailers of tobacco products. A retail license costs BND 300 per year, while an import license costs BND 2,500 per year. Since October 2010, more stringent requirements have been imposed for retail licenses, prohibiting any retail shop selling tobacco in any government buildings, markets, stalls, petrol stations, and within 1 km of a school.
Tobacco excise duties are imposed on a per stick basis on cigarettes and per weight basis on other tobacco products. No other taxes or levies are imposed on tobacco products. According to the Ministry of Finance Royal Customs and Excise Department in November 2010, by command of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam, amendments to excise duties for cigarettes, tobacco, and tobacco products through the Customs Import Duties Order (Amendments 2010) and Excise Duties Order (Amendments 2010) were implemented in the interests of the health and well-being of the people, especially in helping to reduce the risk of chronic diseases related to smoking. Consistent with the health objective of raising taxes, no duty-free concession is allowed for travelers entering Brunei Darussalam.
Tobacco Tax System in Brunei Darussalam
Given the steep tax increases and stricter licensing requirements in 2010, as well as an increase in 2012 in the size of required pictorial health warnings from 50% to 75% of pack surfaces (fourth largest in the world), Brunei Darussalam has seen a decline in the number of licenses issued and the volume of products imported, which the government acknowledges as signs of declining tobacco consumption.