Hong Kong’s tobacco tax will be increased for the second year in a row, taking the price of a pack of cigarettes from HK$80 to HK$96.
Finance chief Paul Chan announced on Wednesday that the duty on cigarettes would rise by 80 cents per cigarette, or HK16 for a pack of 20, with immediate effect.
The move was to provide “greater incentives” for people to quit smoking and to safeguard public health.
“We expect that the proportion of tobacco duty in the retail price of cigarettes will rise to about 70 per cent, gradually approaching the 75 per cent level recommended by the World Health Organisation,” Chan said in Cantonese.
The government increased its tobacco tax in early 2023 for the first time since 2014, increasing 60 cents for one stick, bring one pack of cigarettes to HK$72 to HK$80.
Hong Kong Economic Times reported on Wednesday that an owner of a newspaper stand who sold cigarettes said that business had been slow after revenue from tobacco sales had dropped 70 per cent since last year’s tobacco tax rise.
Separately, some newspaper stall holders told HK01 on Wednesday that some people had purchased several packs of cigarettes ahead of the government’s announcement.
Hong Kong Budget 2024 in full:
- City expects HK$101.6 billion deficit as land sales revenue dip
- City’s economy grew by 3.2% last year, inflation ‘moderate’
- Finance chief asks for ‘understanding’ over lack of sweeteners
- Costly transport subsidy schemes face review amid HK$100 billion deficit
- Artificial islands project delayed, finance chief Paul Chan says, but will go ahead
- Tobacco tax rises for second consecutive year to put public off smoking
- Higher salaries tax rate for those earning over HK$5 million annually
- No consumption vouchers as relief measures scaled back
- City seeks to bring back 3% hotel tax to increase revenue
- Extra stamp duties axed in bid to revive housing market
- Over HK$1.1 billion to ‘soft sell’ city, inc. monthly drone and fireworks shows
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