Untaxed cigarettes represented most of the local market consumption but local illicit trade has reduced thanks to efforts from local Customs, Philip Morris Asia Limited told Macau News Agency.
The tobacco group indicated to MNA that according to data collected by a survey conducted by MS Intelligence untaxed cigarettes represented close to 80 per cent of local tobacco consumption in the last quarter of 2019.
There have been indications that entry restrictions enforced since the beginning of the year due to the Covid-19 pandemic in local borders with Mainland China – the largest entry point for contraband cigarettes – have led to an increase in local tobacco sales.
“We sincerely applaud and welcome actions by the Macau Customs to protect local and legal business activities. After the borders resume normal operation, we look forward to Customs strengthening enforcement to combat illicit activities and we are ready to collaborate with all stakeholders in Macau to fight illicit tobacco,” Brett Cooper, General Manager Hong Kong & Macau of Philip Morris Asia Limited said.
MNA contacted Customs to inquire on the amount of contraband tobacco apprehended in local borders since January of this year but no reply had been received by the time this article was published.
People entering Macau are only allowed to carry for personal use and free of taxes a total of 19 cigarettes or 1 cigar or 25 grams of tobacco products.
In 2015 the city’s taxes on tobacco products officially increased to more than 70 per cent of the sale price with the tax on each cigarette amounting to MOP1.5 (US$0.19) whilst the tax per kilogram of cigars or cigarillos increased to MOP4,326.
The tax hike led to an increase in illegal tobacco products contraband to the city.
