Hong Kong customs crackdown nets HK$563 million worth of illegal cigarettes after tobacco tax increase
- Part of Operation Tempest took place after finance chief announced tobacco tax increase in February
- ‘We have noticed syndicates have used subdivided flats, flats or even public housing units as storerooms,’ customs says
Hong Kong customs officers have seized untaxed cigarettes worth HK$563 million (US$72.1 million) during a 2½-month illegal trade crackdown, coinciding with a tobacco tax increase in February.
Assistant Commissioner Barry Lai Chi-wing said officers clamped down on the post-pandemic trend of smuggling the contraband into the city in small portions from February 19 to May 14 in an operation code-named “Tempest”.
“As the city returns to normality, more passengers will come in and out of Hong Kong. At this point, piecemeal transfers will return as illicit cigarettes get smuggled in with small amounts, finding local storage spots afterwards,” Lai said.
Part of the operation also took place after Financial Secretary Paul Chan Mo-po announced in this year’s budget that the tobacco tax would be raised by 80 HK cents per stick with immediate effect.
The increase raised the average cost of a pack of 20 cigarettes by HK$16 to more than HK$90. A pack costs HK$19 to HK$38 on the black market.
A total of 4,347 people, aged between 15 to 89, were arrested during the operation, with officers confiscating 139 million sticks of suspected illicit cigarettes, 105kg of cigars and around 1,525kg of manufactured tobacco products, with a market value of HK$625 million. The tax take would have been about HK$454 million.