Hong Kong Council on Smoking and Health (COSH) expressed great disappointment with the decision of the Financial Secretary not to raise the tobacco tax in The 2021-22 Budget.
 
Mr Henry TONG, COSH Chairman emphasized, “Raising tobacco tax has been proven to be the single most effective tobacco control measure to reduce smoking prevalence in many countries and regions including Hong Kong. However, tobacco tax has been frozen for seven consecutive years and in most years over the past decade, and there was a slight rebound in local smoking prevalence. This will severely diminish the effect of tobacco price on demand. Tobacco products will become increasingly affordable and make tobacco control in Hong Kong stay stagnant in motivating smokers to quit and preventing smoking uptake in adolescents effectively.”
 
The cigarette price of a pack of the major brands in Hong Kong is about HK$60, and the tobacco tax accounts for only about 63% of the retail price, which was far below World Health Organization’s (“WHO”) recommendation of at least 75%. The results of Thematic Household Survey indicated that the effect of tobacco price in promoting smoking cessation has been weakened by time. Compared with the results in 2012, smokers’ intention to quit decreased by 19.4% and number of quitters gave up smoking due to “tobacco products were too expensive” dropped by 25% in 2019. The government should impose substantial and subsequent annual tax hike to maintain the effect of tobacco tax on demand and to keep in line with WHO’s recommendation.
 
Tobacco tax in Hong Kong was increased by 50% in FY2009-10 and 41.5% in FY2011-12 and generated a 258% and 49% increase respectively, in the number of calls to the Integrated Smoking Cessation Hotline. In addition, smoking prevalence of secondary school students was decreased from 6.9% in 2008 to 3.3% in 2013. The tobacco industry always express opposition against tobacco tax increase under the pretext that it will lead to a surge in illicit cigarettes. WHO reaffirmed that there is no causal link between tobacco tax increase and illicit cigarette smuggling. WHO also rejected the skewed and distorted data of tobacco industry-funded organizations on the prevalence of illicit cigarettes. The industry or affiliates suggested to freeze the tobacco tax to combat smuggling which stands without acceptable reasoning. The most effective measure against illegal trade of tobacco products is strict enforcement.
 
Smoking is responsible for around 7,000 deaths and community costs of more than HK$5.6 billion annually in Hong Kong. Containing the tobacco proliferation can reduce the economic loss due to healthcare costs, nursing burden and loss of productivity related to smoking. COSH will continue to urge the Government to formulate the tobacco endgame goal with a defined timeline and strengthen the multi-pronged tobacco control measures, including increasing resources on smoking cessation services, publicity, education and enforcement against illicit cigarettes. To further lower the smoking prevalence to the Government’s target of 7.8% by 2025, a strong and effective policy on tobacco tax with a substantial and subsequent increment should be implemented to reaffirm the Government’s determination on protecting public health.
 

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