The Finance Bill 2022 raised FED on cigarettes by 7.7% for premium brands and 12.1% for low‑tier brands – breaking a three‑year stagnation in tax rates. While this adjustment is a welcome step, it remains far below the recommended 30% benchmark. SPDC’s analysis shows that the increase will modestly reduce consumption, generate additional revenue, and encourage quit attempts, but cigarettes will remain more affordable and the excise share in retail price will stay well below the global standard of 70%. Stronger, sustained tax hikes are needed to achieve meaningful health and fiscal gains.
