THE Tobacco Institute of Hongkong yesterday accused the Government of being responsible for the loss of one-fifth of its market, as it braces for next week's budget.
Outgoing institute chairman Mr Robert Fletcher said the Government ''clearly miscalculated the effect of its 100 per cent tax on tobacco and the effect it would have on smuggling''.
''We estimate that one billion sticks, or up to 20 per cent of all cigarettes sold in Hongkong, are smuggled in from other countries,'' he said.
Mr Fletcher was diplomatic on whether the industry would be included in this year's round of price increases decreed by the Government.
''I will be very surprised if we are hit heavily again,'' he said.
''If we are, I will be very disappointed if it is more than the rate of inflation.'' Mr Fletcher said the impact of the punitive 200 per cent duty increase of 1991 was still being felt, even though it was eventually halved.