CIGARETTE TAX INCREASE PROPOSED

Financial Secretary Paul Chan proposed in the 2023-24 Budget that the duty on cigarettes be increased by 60 cents per stick, and the duties on other tobacco products also be increased by the same proportion.

While raising tobacco duty is internationally recognised as the most effective means to reduce tobacco use, it has been over 10 years since Hong Kong last imposed a substantial increment, Mr Chan said, adding that the policy effect has been diluted gradually by inflation and various other factors.

“At present, tobacco duty accounts for about 62% of the retail price of cigarettes in Hong Kong, far lower than the rate of 75% recommended by the World Health Organization.”

By charging an increased cigarette duty, the finance chief said: “Our target is to bring the smoking prevalence rate down from the current 9.5% to 7.8%.

“We will continue to review the overall effectiveness of tobacco control measures, and in parallel step up efforts to promote smoking cessation as well as law enforcement against illicit cigarettes.”

Separately, Mr Chan said spending estimates on healthcare during the 2023-24 fiscal year is at $104.4 billion, accounting for about 19% of the Government recurrent expenditure.

Specifically, the Hospital Authority will strengthen a series of services, such as enhancing clinical services for diseases including cancer, increasing public hospital beds and operating theatre sessions. At the same time, it is continuing its rollout of measures to reduce the waiting time for specialist out-patient services, which include streamlining referral arrangements for cross-specialty cases and setting up integrated clinics to provide multi-disciplinary support.

The authority will also introduce a new service for drug collection and delivery by phases, and further promote tele-consultation services.

As regards primary healthcare, Mr Chan said the Government will launch the Chronic Disease Co-Care Pilot Scheme and enhancement measures to the Elderly Health Care Voucher Scheme as mapped out in the Primary Healthcare Blueprint. The details will be announced in the third quarter this year, and sufficient financial resources will be allocated.

Additionally, the Government plans to inject an additional $500 million into the Chinese Medicine Development Fund to support the commissioning of large-scale training, research and publicity projects on strategic themes and to take forward more capacity building programmes for the sector. This entails preparation for Hong Kong’s first Chinese medicine hospital which is expected to commence services in 2025 and strengthen the role of Chinese medicine in the city's primary healthcare system.

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