Table 1

Sales of taxed, smuggled and total cigarettes in Hong Kong, 2009–2010

Year20092010
(A)Cigarette duties (HK$, rounded up in thousand)$2 962 847 000$3 354 551 000
(B)Duty on each cigarette (HK$)$0.804$1.206
(C)Number of cigarettes taxed (A/B)3 685 133 0852 781 551 410
(D)Market share of smuggled cigarettes (%)1115
(E)Total cigarettes (C×1/(1−D))4 140 598 9723 272 413 424
(F)Number of smuggled cigarettes (E−C)455 465 887490 862 014
  • The tax duty and retailed price adjusted immediately when the financial secretary announced the tax rise instead of at the beginning of the fiscal year on 1 April, or the calendar year.7 Euromonitor provides different estimates of illicit cigarettes; see http://www.euromonitor.com/tobacco-in-hong-kong-china/report. However the same calculations based on Euromonitor data lead to the same conclusion that total cigarettes consumed decreased after tax was increased in 2010.