The government vigorously controls tobacco and increases tobacco taxes for the second consecutive year (Photo by Vernon Yuen/NurPhoto via Getty Images)
[Yahoo News Report]Financial Secretary Paul Chan Mo-po released the second budget of this term today (28th). Following last year, the government announced another tobacco tax increase, proposing to immediately increase the tax on each cigarette by $0.8 and increase the tax rates on other tobacco products in the same proportion. “Yahoo News” reporters observed in the market that convenience stores have immediately increased prices, and some gas stations are still selling cigarettes at the old prices.
Gas station staff: No fare increase instructions have been received yet
After the policy was announced, at about 1 p.m., a reporter from “Yahoo News” immediately went to convenience stores and gas stations to observe. At gas stations, as of 1 o’clock, Shell and Sinopec were still selling cigarettes at the old prices. Staff said they had not received further instructions yet, but the retail cigarette inventory at gas stations was not large.
Some OK and 7-Eleven stores in Hong Kong Island have immediately followed the policy to increase prices. There is a notice prepared in an OK convenience store that reads, “Due to the government budget increase in tobacco taxes, the retail price of cigarettes will increase by $ per pack with immediate effect.” The price space is left blank, ready to fill in the credit code; 7-Eleven has a notice posted on it. “In view of the increase in tobacco taxes and operating costs, the retail price of some cigarettes is – HK$16 for a 20-piece package and HK$20 for a 25-piece package.”
A convenience store employee told a “Yahoo News” reporter that the business period this morning was already in a “transitional period” and each person was limited to purchasing 2 packs of old-priced cigarettes. The price will be increased after the policy is announced.
Some OK and 7-Eleven stores in Hong Kong Island have immediately followed the policy to increase prices.
Some OK and 7-Eleven stores in Hong Kong Island have immediately followed the policy to increase prices.
An immediate price increase of 0.8 yuan per cigarette brings the price of a pack of cigarettes to almost 100 yuan
If the calculation is based on 20 cigarettes per pack, a tax of 16 yuan will be added. Currently, each pack of cigarettes sells for about NT$72, which means that after tax is added, each pack of cigarettes sells for at least NT$88 or even higher.
After last year’s fiscal budget added a tobacco tax of $0.6 per cigarette, this year another tobacco tax will be added. Chan Mo-po said today that increasing tobacco taxes is internationally recognized as the most effective measure to reduce tobacco use. The government proposes to immediately increase the tax on each cigarette by 80 cents, which is similar to last year.
The government expects that the proportion of tobacco tax in the retail price of cigarettes will increase to about 70%, gradually moving towards the 75% level recommended by the World Health Organization, to strengthen incentives for quitting smoking. The government will continue to vigorously crack down on illicit cigarettes and strengthen smoking cessation services and publicity and education.
According to the Dutiable Commodities Ordinance, the tobacco tax per 1,000 cigarettes is $2,506, which is equivalent to a tobacco tax of $50.12 per pack of 20 cigarettes. After adding the tobacco tax, the tobacco tax is 3306 yuan per 1,000 cigarettes, which is equivalent to 66.12 yuan per pack of 20 cigarettes.
Related reports:
Budget 2024 | Government budget deficit of NT$101.6 billion due to effective immediately | Continuously updated | Yahoo
