Hong Kong customs seizes HK$208 million in black market cigarettes in 15 days after budget tobacco tax increase

Superintendent Jeff Lau says 776 people arrested during second phase of a citywide operation on contraband tobacco between February 29 and March 14

‘Crime syndicates anticipated the possibility of an increase in tobacco tax, so they stockpiled a larger quantity of illicit cigarettes ahead of time,’ Lau adds

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A customs officer stands guard over some of the millions of dollars worth of contraband cigarettes seized as part of the post-budget crackdown on contraband tobacco. Photo: Dickson Lee

Published: 3:19pm, 18 Mar 2024Updated: 10:10pm, 18 Mar 2024

Hong Kong customs officers seized black market cigarettes worth more than HK$208 million (US$26.6 million) in the first 15 days after a tobacco tax increase came into force as part of last month’s budget.

Superintendent Jeff Lau Leung-chi of customs’ revenue crimes investigation bureau said on Monday the contraband products would have generated about HK$147 million in tax if the tobacco had been legally imported.

Lau attributed the increase in cigarette seizures to enhanced enforcement action to combat the trade in illegal tobacco products at all levels and the operation’s longer duration in the second phase.

“We also believe that crime syndicates anticipated the possibility of an increase in tobacco tax, so they stockpiled a larger quantity of illicit cigarettes ahead of time to supply the market after the tax hike,” he said.

(From left) Lau Leung-chi of customs’ revenue crimes investigation bureau and Au Yeung Man-ching of the rail and ferry command display cigarettes seized as part of the crackdown on contraband tobacco. Photo: Jelly Tse

The untaxed cigarettes were discovered over the second phase of a citywide operation code-named “Tempest”, which involved the arrest of 776 people between February 29 and March 14.