The number of cases of illicit cigarettes seized in Hong Kong soared by 80 per cent last year, reaching HK$2.7 billion (US$347 million) in value, with the customs chief attributing the surge to the rising tobacco tax in the city.
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Commissioner for Customs and Excise Chan Tsz-tat said during his department’s annual review on Tuesday that the city’s recent increases to its tobacco tax had incentivised visitors to bring untaxed cigarettes into Hong Kong.
“Undeniably, the tax difference over recent years has incentivised more visitors to bring in cigarettes above the duty-free amount, even though it’s illegal. The number of cases is rising. In 2025, I can see the number is still climbing for now,” Chan said.
Hong Kong has been increasing its tobacco tax in the past few years. Last February’s government budget had pushed the average cost of one 20-stick pack of cigarettes up by HK$16 to more than HK$90, with tax accounting for HK$66 of the sale price.
The Post has previously learned that a pack of contraband cigarettes can be sold between HK$20 and HK$30 on the black market.
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The Customs and Excise Department recorded 31,242 law enforcement cases in 2024, among which 68 per cent, or 21,284, involved illicit cigarette busts, representing an 80 per cent surge from 11,806 illicit cigarette cases recorded in 2023.