Hong Kong Hikes Cigarette Prices

The average price of a pack of cigarettes in Hong Kong increased to HKD73.75 ($9.40) on Feb. 22, following a 31 percent tax hike, reports the South China Morning Post.

With the increase, the city government aims to boost its coffers and cut the number of smokers by 100,000 in the next three years.

“Increasing tobacco duty is recognized 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.” 

The government estimates the price increase would bring in an extra HKD1 billion a year in revenue. 

The prevalence of smoking in Hong Kong has dropped from 23.3 percent of the population in 1982 to 9.5 percent at present. With the new measure, authorities hope to bring the figure down to 7.8 percent by 2025, or reduce the number of smokers from about 580,000 to 480,000. 

Tobacco taxes now account for 68 percent of the pack price. This is higher than the 62 percent prior to the tax hike but still lower than the 75 percent rate recommended by the World Health Organization. 

By comparison, tax makes up 67.1 percent of the price of a pack of cigarettes in Singapore, 73.9 percent in Australia and 82 percent in New Zealand, according to figures from 2020. 

A government representative said that an increase in tobacco tax had led to more inquiries to the Department of Health’s smoking cessation hotline in the past. After the tobacco tax was raised by 50 percent in 2009, calls to the hotline rose by 257 percent.