Hong Kong’s government plans to roll out a new labeling system for tobacco products in phases, with full implementation expected by June 2027, according to the city’s Customs and Excise Department.
In a written response to a legislative inquiry by lawmaker Edmund Wong Chun-sek, Commissioner of Customs and Excise Chan Tsz-tat said the department will invite tobacco companies to participate in a pilot program later this year.
“Taking into account various considerations, we propose a phased implementation,” Chan stated. “The first phase may begin as early as the fourth quarter of 2026, with full rollout targeted for the second quarter of 2027.”
The initiative involves introducing laser-etched labels on tobacco products subject to tax, in an effort to combat the growing black market for cigarettes.
Chan noted that the timeline for full implementation would depend on several factors, including legislative amendments, the technical complexity of the system, industry readiness, and whether a grace period is needed for existing stock.
The labeling system is part of the government’s broader strategy to tighten regulation and enforcement amid a sharp rise in illegal tobacco sales. In 2023, authorities seized more than HK$2.7 billion ($347 million) worth of illicit cigarettes in over 20,000 cases—an 80 percent increase compared to the previous year. Chan attributed the surge to a significant tobacco tax increase.
Under the 2023 budget, the tax on cigarettes rose by HK$0.80 per stick, raising the price of a 20-pack by HK$16 to over HK$90. Of that amount, HK$66 accounts for taxes. In contrast, a pack of smuggled cigarettes can be purchased on the black market for just HK$20 to HK$30.
According to Chan, a government-appointed consultant recommended that the label initially be applied only to retail cigarette packs.
To support implementation, the department plans to rehire seven retired staff members—three senior officers, three officers, and one inspector. The estimated annual cost of staffing for the scheme is projected at HK$4.11 million.
