Hong Kong Raises Tobacco Tax by 6 Cents

Feb.22.2023
Hong Kong Raises Tobacco Tax by 6 Cents
Hong Kong to increase tobacco tax by 6 cents per cigarette, with aim of reducing smoking rates and increasing government revenue.

The Financial Secretary of the Hong Kong Special Administrative Region, Paul Chan Mo-po, announced during the presentation of the 2023-2024 government budget that the tobacco tax on each cigarette will be raised by 6 Hong Kong cents (about 0.77 US cents). This means that the retail price for a pack of 20 cigarettes will increase by HK$12 (about $1.54). The tax rate on other tobacco products will also increase by the same proportion, which is about 31.4%. Chan Mo-po pointed out that the tobacco tax has not been adjusted for over a decade, and this tax increase is expected to reduce smoking and encourage people to quit. However, he did not mention how much revenue this tax increase is expected to generate for the government.


In the previous financial year, tobacco tax revenue amounted to 7.89 billion yuan.


Currently, the tobacco tax rate in Hong Kong is set at HKD 1,906 per 1,000 cigarettes (approximately HKD 1.9 per cigarette), HKD 2,455 per kilogram for cigars, HKD 468 per kilogram for Chinese-style tobacco, and HKD 2,309 per kilogram for other manufactured tobacco products. A pack of 20 cigarettes currently retails for around HKD 60 (approximately RMB 52.7), with HKD 38 (approximately RMB 33) being the tax amount. This means that taxes make up approximately 62% of the cigarette price.


The last time the tobacco tax was increased in the Hong Kong Special Administrative Region was during the 2011-2012 fiscal year, when the tax rate was raised by 41.5%. The previous increase occurred during the 2009-2010 fiscal year, with a hike of 50%. In the 2021-2022 fiscal year, the government expects to generate 7.89 billion Hong Kong dollars in revenue from the tobacco tax alone.


Secretary for Financial Services and the Treasury, Paul Chan, announced in the Budget Plan that Hong Kong's current tobacco tax accounts for only around 62% of retail prices, which is far below the World Health Organization's recommended 75%. To address this, the government will increase tobacco tax by HKD 6 per cigarette, with the goal of reducing the smoking rate from the current 9.5% to 7.8%. The government also stated it will enhance efforts to promote smoking cessation and enforcement against illicit tobacco trade.


Reference:


Under the proposed financial budget plan, tobacco taxes will increase by approximately 30%. This would result in a price increase of 12 yuan per pack of cigarettes.


This document has been generated through artificial intelligence translation and is provided solely for the purposes of industry discourse and learning. Please note that the intellectual property rights of the content belong to the original media source or author. Owing to certain limitations in the translation process, there may be discrepancies between the translated text and the original content. We recommend referring to the original source for complete accuracy. In case of any inaccuracies, we invite you to reach out to us with corrections. If you believe any content has infringed upon your rights, please contact us immediately for its removal.

BAT H1 2025 Trading Update: Velo Volume Share Hits 29.7%, Vuse Revenue Falls 15%, glo Hilo Set for Broader Expansion
BAT H1 2025 Trading Update: Velo Volume Share Hits 29.7%, Vuse Revenue Falls 15%, glo Hilo Set for Broader Expansion
BAT’s H1 2025 revenue slightly beat expectations, with full-year growth forecast at 1–2%. Velo grew to 29.7% share in key markets; U.S. revenue surged. Glo Hilo doubled conversion in Serbia, set for wider rollout. Vuse revenue down ~15% amid illicit competition, but Vuse Ultra launch may aid H2 recovery.
Jun.03 by 2FIRSTS.ai
Malaysian Medical Association Urges Nationwide E-Cigarette Ban Amid Rising Student Usage
Malaysian Medical Association Urges Nationwide E-Cigarette Ban Amid Rising Student Usage
The Malaysian Medical Association (MMA) has called on the government to impose a nationwide ban on the sale of e-cigarettes. The MMA pointed out that the use of e-cigarettes among young people continues to rise, with nearly 20,000 cases of student use reported on school grounds alone.
May.19 by 2FIRSTS.ai
Philippines DTI Reports $740K in Illegal E-Cigarette Seizures and Removal of 100 Million Violation Records This Year
Philippines DTI Reports $740K in Illegal E-Cigarette Seizures and Removal of 100 Million Violation Records This Year
Between January and May 2025, the Philippine DTI seized $740,000 worth of illegal e-cigarettes from 88 unauthorized brands. Over 104 million online violations were removed, 628 businesses flagged, 385 legal notices issued, and 10 brands suspended.
May.28
VUSE Pro Smart Debuts with Display and App Integration
VUSE Pro Smart Debuts with Display and App Integration
British American Tobacco's Vuse brand has unveiled its first screen-equipped e-cigarette, the Vuse Ultra, at the Swiss Tobacco Exhibition. This device features a compact AMOLED display that provides real-time information on battery life and e-liquid levels. It integrates with the MYVUSE app, offering functionalities such as usage tracking, device location, and cloud control. Notably, the Vuse Ultra comes with a removable battery, facilitating responsible disposal.
May.09 by 2FIRSTS.ai
OXVA Launches Xlim SQ Pro 2 with 1.09-Inch Touchscreen and Six Built-In Tools
OXVA Launches Xlim SQ Pro 2 with 1.09-Inch Touchscreen and Six Built-In Tools
OXVA has introduced the Xlim SQ Pro 2, an open-system vaping device featuring a 1600mAh battery and a 1.09-inch HD touchscreen. The device is compatible with the full range of XLIM PODS cartridges and includes six built-in tools, such as a flashlight and stopwatch. The Xlim SQ Pro 2 is now available for online purchase in markets including the United Kingdom, Saudi Arabia, and Egypt.
May.09 by 2FIRSTS.ai
DTI Reiterates SHFT Product Distribution Ban; Social Media Giveaways Face Penalty as Violations
DTI Reiterates SHFT Product Distribution Ban; Social Media Giveaways Face Penalty as Violations
DTI reiterates ban on SHFT products following free giveaway announcement on social media, citing violation of preventive measures.
Apr.22 by 2FIRSTS.ai