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Financial Secretary proposes raising tobacco duty in the 2011/12 Budget by 41.5%
According to the 2011-12 Budget announced today, Mr John Tsang, Financial Secretary, HKSAR proposed to increase the tobacco duty by 41.5% for public health protection.
The tobacco duty shall be payable at the following rates :
for each 1000 cigarettes
                   $2,197 / kg
Chinese prepared tobacco
                   $419 / kg
all other manufactured tobacco except tobacco intended for the manufacture of cigarettes
                   $2,067 / kg
A cigarette more than 90 mm long, excluding any filter or mouthpiece, shall be treated as if each additional 90 mm or portion of 90 mm is a separate cigarette.

The above adjustments take immediate effect by way of a Public Revenue Protection Order gazette today. 
The duty of cigarettes will be increased by HK$0.5 per stick hence the tax for a pack of 20-stick cigarettes will be raised from HK$24 to HK$34. The retailers of cigarettes have based on the adjustment of tobacco tax to increase the retail price from average HK$39 to HK$50. The tobacco tax currently accounts for 68% of retail price after adjustment.
The Financial Secretary also expressed that the Customs and Excise Department will step up law enforcement in combating illicit trade of cigarettes. At the same time, the government will allocate HK$26 million to strengthen tobacco control, including HK$21 million for the provision and promotion of smoking cessation services.
Sources :
2.      The 2011-12 Budget
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