While tax evasion may seem delightedly feasible in the movies, it’s not so applicable in real life. Five men and a woman, aged between 30 and 52, were arrested for smuggling duty-unpaid cigarettes.
Here’s what happened.
Cigarettes Seized In An Operation
Last Friday evening (28 Jan), Singapore Customs officers went on an operation in Jurong West Street 62 and seized 7,186 cartons of duty-unpaid cigarettes.
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Three Singapore-registered vehicles and $14,898.65 in cash were also confiscated, according to a statement on Wednesday (2 Feb).
Of course, not only were material items taken away—the people involved in the act were, too.
The operation started with officers observing two men transferring brown boxes from a truck to a van. With goods in place, the van drove off.
However, this was not all. Subsequently, an open-top lorry parked beside the truck, and more boxes were loaded into the lorry.
Immediately swooping in, officers apprehended the two men present at the scene; before arresting another in the vicinity. From both vehicles, the officers found 4,336 cartons of duty-unpaid cigarettes.
Upon following the van to Joo Chiat lane, the officers intercepted the activity as another man approached the vehicle containing a male driver and a woman seated inside.
Although the man who approached the van attempted to escape, all three were arrested, while officers confiscated 2,850 cartons of cigarettes from the van.
Dealing With Duty-Unpaid Goods A “Serious Offence”
It is perhaps not wise to test the system—offences can be fined up to 40 times the amount of duty and GST evaded and jailed up to six years, or both.
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Considering that a total amount of $662,520 was evaded in this incident, 40 times of this is a hefty price to pay. The agency warned that trading, delivering or storing duty-unpaid goods are serious offences under the Customs Act, as well as the GST act.
Not only that, the agency added that “vehicles used in the commission of such offences and proceeds of sales of duty-unpaid cigarettes are also liable to be forfeited.”
Singapore’s Heavy Tobacco Tax
Lest you’re not aware, cigarettes have become more expensive since 2018; there has been a 10% increase in excise duty on all tobacco products.
Singapore “implements a specific tax rate of $0.427/cigarette stick”, in addition to the 7% Goods and Service Tax. This heavy tax burden is implemented to reduce the damage of tobacco products on public health, which is also known as a “sin tax”.
This incident isn’t the first. Did you know that duty-unpaid cigarettes can also be found among watermelons?
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Featured Image: Singapore Customs
Here's a summary of the Chocolate Finance saga, simplified so even a non-finance kid can understand:
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