HK's plain packaging tobacco law sparks fierce debate over illicit trade and product bans

Lawmaker Peter Shiu Ka-fai has sharply questioned the government's new tobacco control measures, arguing that a significant drop in tax revenue suggests smokers are turning to the black market rather than quitting. The debate, held during a Legislative Council Panel on Health Services meeting on Friday, also raised concerns that rigid new plain packaging rules could effectively ban certain products, including little cigars, from the city's shelves.

Doubts cast on official smoking rates

The discussion stems from the recently passed "Tobacco Control Legislation (Amendment) Bill 2025," which empowers the government to mandate standardized, plain packaging for all traditional tobacco products.

During the meeting, Shiu, who represents the wholesale and retail sector, voiced strong reservations about the government's strategy.

While supporting the overall goal of protecting public health, he presented data suggesting a growing discrepancy between official smoking rates and reality.

Shiu pointed out that while tobacco taxes had been increased twice in a row, the expected surge in tax revenue never materialized.

He calculated that based on tax hikes of over 31 percent, revenue should have climbed to as high as HK$12.5 billion.

Instead, the government only collected HK$5.5 billion. Shiu argued this massive shortfall indicates that the government's official smoking rate, which has fallen from 9.1 to 8.5 percent, does not capture the full picture and that a large number of smokers have likely shifted to buying illicit cigarettes.

In response, the Health Bureau described the lawmaker's figures as complex and potentially confusing.

Officials countered that the government's latest statistics clearly show a decline of over 100,000 smokers.

They defended the current 8.5 percent smoking rate as a major success, stating it is extremely close to the original target of 7.8 percent and deserving of a grade of "95 out of 100."

Fears of an unintended product ban

Shiu also raised alarms about the practical implications of the plain packaging law.

He explained that the regulations go beyond aesthetics, standardizing the physical dimensions of cigarette packs.

This, he argued, would make it impossible to sell cigarettes that are longer than standard or come in non-standard quantities, such as packs of 25.

He further criticized the proposed ban on foil lining inside packs, noting its function in preserving tobacco quality.

A key point of contention was the treatment of little cigars. While the law exempts large, premium cigars from plain packaging, little cigars are not included in this exemption.

Shiu expressed serious concern that manufacturers would not find it commercially viable to create new, compliant packaging specifically for Hong Kong's relatively small market.

This would likely lead to little cigars disappearing from legal sale entirely. He suggested the government consider an exemption or more flexible measures, such as allowing stickers.

The Head of the Tobacco and Alcohol Control Office, Manny Lam Man-chung, responded that the rules for little cigars are actually more flexible than those for cigarettes.

He clarified that materials like metal and protective inner linings would still be permitted for little cigar packaging.

Furthermore, the required health warnings could be applied via stickers.

Shiu urged officials to continue their dialogue with the industry, emphasizing that the policy's intention should not be to inadvertently ban products from the market.