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Tag: Taxation

  • Hong Kong Seizures Hit $288 Million in 2023

    Hong Kong Seizures Hit $288 Million in 2023

    Credit: Alven 0920

    Customs officers in Hong Kong reported that the agency had impounded more than 650 million black market cigarettes worth HK$2.25 billion ($287.8 million) last year, the largest annual cash value in more than two decades, according to media reports.

    The seized cigarettes would have generated about HK$1.54 billion in tax revenue, also a record, over the same period, according to an undisclosed source.

    Last week, authorities in Hong Kong said they were considering a further increase in tobacco duty.

    Last year’s total number of cigarettes seized was lower than the 732 million impounded in 2022, although the value was higher. Last year’s record seizure coincided with a 31 percent tobacco tax increase in February, which raised the average cost of a pack of 20 cigarettes by HK$12 to more than HK$70.

    A pack on the black market costs HK$18 to HK$38.

    The source said the confiscated tobacco products were stored in government warehouses currently, pending court proceedings or further investigations before being destroyed and buried at landfill sites.

    He added customs officials would boost efforts to combat crime syndicates that tried to take advantage of busy logistics services in the run-up to the Lunar New Year to smuggle cigarettes into the city.

  • U.K.: Levies for Vapes to be Unveiled in March

    U.K.: Levies for Vapes to be Unveiled in March

    Credit: TR Archive

    A new tax will hit vapers in the United Kingdom despite warnings it will punish people who have switched to e-cigarettes after quitting smoking.

    The plans for the levy, which will likely increase the cost of vaping liquid by at least a quarter, will be unveiled in the Budget in March.

    A government source told The Mirror it was now almost inevitable that a tax on vaping will be introduced as part of the Spring Budget, which Chancellor Jeremy Hunt will announce on March 6.

    Ministers are looking to copy European countries such as Germany and Italy that already have levies on vapes.

    A 10ml bottle of e-liquid, which a typical vaper would get through in a week, costs around £4 at present. In Germany, a £1.40 vape tax is slapped on 10ml bottles, with plans to double this to £2.80 in 2026.

    Italy, which in 2014 became the first country to tax e-cigarette fluid, charges a £1.10 levy on 10ml bottles.

  • New Year Begins Belgium’s Vaping Tax

    New Year Begins Belgium’s Vaping Tax

    Credit: Master Sergeant

    Beginning January 1, 2024, Belgium will introduce a new tax on e-liquids used in electronic cigarettes. The tax will be set at 15 cents per milliliter.

    The move has received criticism from both users and retailers who fear that it will lead to increased costs and a potential shift back to traditional tobacco cigarettes.

    The spokesperson for the federal Finance Minister defended the tax, stating that it aligns with Germany’s tax rate, which is also set to increase in the coming years, according to media reports.

    They further clarified that the goal is not to encourage people to return to smoking combustible cigarettes but to recognize that e-cigarettes are also tobacco products and should be used as a temporary measure to quit smoking.