May 4, 2011

Last Effort to Stop Tobacco Tax Increase

Legislators have made a last-ditch appeal to the government to amend the 41.5 percent tobacco tax increase to soften the blow for smokers. The rise should be spread over five years, which means each Kent cigarette stick will cost 20 HK cents more a year, said New People's Party legislator Regina Ip Lau Suk-yee.

Democratic Alliance for the Betterment and Progress of Hong Kong legislator Wong Ting-kwong said although the move may help people reduce smoking or quit the habit, the percentage increase is too high.

Wong said: "Increasing the tobacco tax is not the only way to help people quit the habit.

"The government should also strengthen education among members of the public."

He said he would vote down the tobacco motion in the Legislative Council today.

He explained that if the motion is passed, the Public Revenue Protection Order 2011 will be abolished.

It would then be difficult for the tobacco industry as it would have to refund the tax to those who have paid it since February 23.

The revised tax on cigarettes was announced by Financial Secretary John Tsang Chun-wah in his latest budget.

It was given provisional legal effect for four months until June 23 under what is known as a Public Revenue Protection Order.

Albert Chan Wai-yip of People Power and Vincent Fang Kang of the Liberal Party submitted motions earlier to abolish the order. The DAB and Democratic Party said they would vote against the tobacco motion, while the Hong Kong Federation of Trade Unions said they would abstain.

FTU legislator Pan Pey-chyou said: "As a doctor, I know the harmful effects of cigarettes and would not encourage people to smoke.

"But since cigarettes have became an important part of smokers' lives, they should bear the burden."

Meanwhile, the Civic Party and legislator Leung Ka-lau still have to reach a decision on whether to vote against the tobacco motion.

"It depends on how the government will deal with illicit cigarettes," said Alan Leong Kah-kit.

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