A pack of cigarettes will cost HKD 12 (USD 1.53) more after the tobacco tax was raised in an attempt to reduce the number of smokers and boost the government’s tax income, reports the South China Morning Post.

The 31 per cent raise in tobacco tax means an average pack of cigarettes now costs around HKD 73.75 (USD 9.39) with many convenience stores immediately increasing the retail price. The finance chief raised the tobacco tax to reduce the number of smokers by 100,000 – from 580,000 to 480,000 over the next three years and to bring an additional HKD 1 billion (USD 127.4 million) to the government’s coffers, reports the South China Morning Post.
“Increasing tobacco duty is recognised internationally as the most effective means to reduce tobacco use,” Financial Secretary Paul Chan Mo-po said in his budget speech. “A rise in cigarette price will increase the incentive of smokers to reduce or quit smoking.”
He went on to say that the government had carefully considered the raise and the impact it would have on smokers who are less well off.
“With inflation and other factors, [previous tax rates’] effectiveness in encouraging the people to smoke less or quit smoking has faded out gradually, so we are increasing by 30 per cent this time,” he said.
Around 68 per cent of the total price of a pack of cigarettes are taxes which is still lower than the 75 per cent recommended by the World Health Organization (WHO).