Authorities urged to step up enforcement to combat illicit cigarettes as LegCo passes duty raise

The amendment bill that increased the tobacco tax by 80 cents per cigarette was passed by the Legislative Council on Wednesday as lawmakers again called on the government to step up law enforcement to target illicit cigarette activities. 

The Dutiable Commodities (Amendment) Bill 2024 was passed by LegCo with 82 votes in favor and four votes against, including Liberal Party’s Peter Shiu Ka-fai, Michael Lee Chun-keung, and Frankie Yick Chi-ming, and election committee constituency’s Paul Tse Wai-chun. 

Shiu expressed his clear opposing stance in increasing the tobacco tax and said although smoking damages the public’s health, adults should have their own choice of freedom. He also challenged if the duty raise aims to lower the smoking prevalence or to help increase the government’s revenue. 

He pointed out that about 40 countries have raised the tobacco tax to 75 percent of the retail price as suggested by the World Health Organization (WHO) and they all record a higher smoking prevalence than Hong Kong’s 9.1 percent in 2023. 

He also said the income from tobacco duty stood at HK$7.9 billion in 2022-23 but the number soon dropped to HK$7.3 billion after duty hike, attributing the decline to the illicit cigarette market. 

The impression that only the rich can smoke and the poor has fewer choices is not a very good education direction, Shiu noted. 

Steven Ho Chun-yin from the Democratic Alliance for the Betterment and Progress of Hong Kong said he voted in favor of the bill “very unwillingly” and described the government as “giving good kids the strongest blow”. 

Ho continued that citizens either buy duty-paid cigarettes or illicit cigarettes and he hasn’t seen the government target those who buy illicit cigarettes but only control the “good kids” by raising the tobacco duty. 

“At a certain stress level the ‘good kids’ will be overwhelmed and switch to buy illicit cigarettes since they are cheaper and a more economic option,” he said. He hopes the government can table a proposal and release data on smokers who stepped away from illicit cigarettes over the past five years. 

David Lam Tzit-yuen, chairman of the bill committee, said about 7,000 people die of smoking every year, costing Hong Kong about HK$5.6 billion in medical expenses and production loss. 

He stressed that increasing the tobacco duty can indeed lower the smoking prevalence and it should be complemented by the enforcement of combating illicit cigarettes at the same time. 

Acting Secretary for Health Libby Lee Ha-yun said authorities’ policy on smoke control runs in two parallel lines; it targets smokers on one hand and prevents non-smokers from being affected on the other. 

Some 580,000 people still smoke traditional cigarettes every day, many of whom have lower incomes and cannot easily afford the damages brought to their health and finance. And the heavy burden will be ultimately shifted on the society and healthcare system, Lee said.