'Four of five newsstands to shutter' if tobacco tax goes up

More than 80 percent of newsstands could close down if the government further raises the tobacco tax, vendors have warned, claiming they already have lost 50 percent of business since the last increase in February.

More than 500 vendors have signed a petition opposing the plan to further increase the tobacco tax after the Health Bureau launched a public consultation on the issue, including increasing tobacco duty to 75 percent as suggested by the World Health Organization.

Secretary for Health Lo Chung-mau has said raising the tobacco tax is the most effective way to reduce the number of smokers in the city.

Currently, a pack of 20 cigarettes costs about HK$74 after Financial Secretary Paul Chan Mo-po raised the duty by 60 HK cents per stick in his latest budget.

Lam Cheung-fu, head of the Coalition of Newspaper and Magazine Merchants, which represents over 35,000 newsstands, said vendors would suffer big income losses anticipates that four out of five newsstands would shutter if the tobacco tax is raised further.

"It will be the last straw that breaks the camel's back if the government insists on proceeding in its own manner," Lam said.

Stalls selling tobacco products had earned two-thirds of their income from cigarettes, he added, but that dropped by half following the tax increase in February. He said the tobacco tax increase would only encourage smokers to purchase illicit cigarettes.

"It's common to see advertisements and sales of illicit cigarettes everywhere, on websites, social media and communication apps, while some posters of illicit cigarettes can be seen in tea restaurants and fruit stalls," Lam said.

Lam Kit-ching, who has been operating a newsstand in Sham Shui Po for more than 50 years, lamented the severe impact on her business and worried about the future as fewer people are buying cigarettes.

Besides newspapers, she said she can only sell 12 goods under the newsstand's license, including water, lighters, paper towels and cigarettes.

"We can only sell a limited number of products and tobacco is our main source of revenue," she said.

Lam Cheung-fu said the coalition has repeatedly requested authorities to allow vendors to sell more products such as rechargeable batteries, charging cables and bottled drinks, but they are consistently ignored.

The coalition urged the government to examine the issue of smuggled cigarettes when developing tobacco control legislation and consider various viewpoints.