The Hong Kong government has increased the cost of cigarettes

The backstory: Over the last few decades, the smoking rate in Hong Kong has been steadily dropping, but almost 600,000 people still smoke. Hong Kong wants to reduce that number to essentially create a smoke-free city. Last year, the government enlisted the help of the public in a unique way since the police can’t always catch people in the act in non-smoking areas. Secretary of Health Lo Chung-mau said, “When the members of the public see people smoking in non-smoking areas, even if no law enforcement officers can show up immediately, we can stare at the smokers." When in doubt, ramp up the public shame. 

The current smoking rules include a fine of up to HK$1,500 (US$192) if a person is caught smoking in a non-smoking area. The government also increased the tax on cigarettes to about 68% in 2023, up from the previous 62% but still below the recommendation by the World Health Organization (WHO) of 75% for the tax to be effective in stopping people from buying cigarettes. 

The development: Following the city’s annual budgeting review, the Hong Kong government has now increased the tax on cigarettes for the second year in a row, raising it by almost 32% to take effect immediately. This means a pack of cigarettes will cost HK$96 (US$12) instead of HK$80 (US$10). Hong Kong Economic Times reported on Wednesday that an owner of a newspaper stand who sells cigarettes said business had been slow after revenue from tobacco sales dropped 70% since last year’s tobacco tax rise.

Key comments: 

"We expect that the proportion of tobacco duty in the retail price of cigarettes will rise to about 70 percent, gradually approaching the 75 percent level recommended by the World Health Organisation," said Financial Secretary Paul Chan. 

"This will provide a greater incentive for the public to quit smoking, safeguarding public health," Chan added.