Total Consumption was estimated at 728 million cigarettes in 2017, broadly stable in comparison with 2016.
Legal Domestic Sales declined by 22.3% to 227 million cigarettes in 2017. In total legal sales have halved in volume since 2014.
This follows the implementation of a tobacco tax bill in July 2015, which trebled the Excise Tax rate on cigarettes. At the same time, the passenger duty-free personal import allowance was cut from 100 cigarettes per person to 19 cigarettes.
Over the same period, Illicit Incidence has risen by more than 20 percentage points to 55.7% in 2017.
The majority of illicit cigarettes consumed in 2017 were identified as intended for final retail sale in China.
The Tax Loss associated with Illicit Consumption in 2017 amounted to MOP 608 million (USD 75.8 million).
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