The Hong Kong government increased the tobacco tax by nearly 32 per cent, stating that the measure aims to offer smokers additional motivation to quit, reports rthk.
In his budget speech, Financial Secretary Paul Chan declared an immediate duty hike of HKD 0.8 (USD 0.10) per cigarette. The previous year, he had increased the tax by HKD 0.6 (USD 0.07) per cigarette.
This latest hike adds an additional HKD 16 (USD 2.04) in tax to a 20-cigarette pack, totalling HKD 66 (USD 8.44). With the current prices, smokers might spend over HKD 90 (USD 11.50) for each pack.
“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.
He added that raising taxes is globally recognised as the most effective way to cut smoking rates. “This will provide a greater incentive for the public to quit smoking, safeguarding public health,” he said. Chan stated that the government would intensify its efforts to combat illegal cigarette sales and enhance services, publicity, and education to assist individuals in quitting smoking.