Tobacco duty to rise
February 26, 2014
Smokers will pay another 20 cents per cigarette in tobacco duty to safeguard public health, Financial Secretary John Tsang announced today.
The increase takes immediate effect.
Delivering his 2014-15 Budget today, Mr Tsang said tobacco duty is an effective means of tobacco control and helps to lower public health risks related to smoking. He stressed that the tax hike is not a budgetary measure, but aims to bring tobacco duty to the level recommended by the World Health Organisation.
To enhance medical infrastructure and meet future demands, he said the Government has dedicated $55 billion to building new hospitals in Tin Shui Wan and Kai Tak, and will expand or redevelop five hospitals to provide additional services.
The Legislative Council has also approved a $13 billion grant to boost Hospital Authority facilities in the coming decade.
For those who can afford private healthcare services, Mr Tsang said he had earlier earmarked $50 billion to support healthcare reform, which includes a voluntary insurance scheme.
The Food & Health Bureau will consult the public on the matter, and he will consider giving tax concessions to those who subscribe to regulated insurance products in future.
He also proposes to allocate $420 million to subsidise colorectal cancer screening for specific age groups, and another $600 million a year to increase the elderly healthcare voucher scheme to $2,000 a year per recipient.
