http://www.macaudailytimes.com.mo/macau/28717-Associations-urge-tobacco-tax-duty.html
While local anti-smoking associations slam the tobacco tax for being too low, street vendors say the increase may hurt their business
Two local anti-smoking associations urge the government to raise the tobacco tax “as soon as possible”, in order to make prevention more effective. The Health Bureau said the new tax will be ready by the time the new tobacco ban goes into effect in January 2012.
Currently, each cigarette pack in Macau is taxed at a rate of 4 patacas, 20 cents for each cigarette. In Hong Kong, the government has increased its rates by 41.5 percent in February. A pack of cigarettes is now priced at HKD 50, 70 percent of which represents tobacco tax.
“Tobacco prices in Macau are far too cheap,” director-general of the Smoking and Healthy Life Association of Macau, Samuel Chan, told the Macau Daily Times.
He suggested cigarette prices in Macau “should be similar to Hong Kong, if not higher”. Therefore, Chan called on the government to “seriously pushing it as soon as possible.”
“According to the experience of Hong Kong and the United Kingdom, taxation on tobacco has been proved to be one of the most effective means for prevention,” Chan recalled.
“Surveys from the WHO [World Health Organisation] also show that the number of people quitting smoking have increased after taxes have been raised,” he stressed.
Director-general of the Smoking Abstention and Good Health Association, Johnny Au, also believes “Macau has lot of room to increase taxes compared to Hong Kong.”
He urged the government to find a way to raise tobacco taxation in order to put Macau in line with Hong Kong and Taiwan.
Lawmaker Paul Chan Wai Chi and member of the New Macau Association, which has been strongly advocating a tobacco ban in the city, told the MDTimes that taxes should double, but warned that Macau “cannot be compared with Hong Kong in this regard, because it depends on local residents’ purchasing power”.
“A tobacco tax hike may provoke tobacco smuggling and the authorities need to enhance supervision of this industry,” the pro-democrat pointed out.
Au added that the raising of taxes would only be effective to encourage low-income people to quit smoking. “Higher income people will continue to smoke,” he said.
In May this year, the Health Bureau submitted a proposal to the Economic Services to increase tobacco tax. In a written reply to MDTimes it said it is “expecting to announce the new tobacco tax when the new law becomes effective”.
The new law, which will come into force on January 1, 2012, bans smoking in most public places and indoors, except casinos. Gaming operators will be required to set aside dedicated smoking areas of up to 50 percent of their total public area from January 2013.
Meanwhile, Chan Wai Chi suggested that the government strengthen promotion and education in order for “people to understand that smoking not only harms their health, but also indirectly affects others as well”.
The two associations also ask the government to not only rely on taxation and the new anti-tobacco law, but also put forward more measures.
“We must have a whole package of measures for anti-smoking prevention, as taxation is only effective for low-income people,” Au insisted.
In addition, Samuel Chan suggested the government to put more money for promotion of healthy messages to young people.