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News:
The Customs and Excise Department has been criticised for letting travellers pass through checkpoints with more than the permitted allowance of tax free cigarettes.
The commission also accused the discount cigarettes online department of failing to implement a rule that travellers who leave Hong Kong for less than 24 hours should not be allowed to return with duty-free items.
Residents can only bring in 60 tax free cigarettes when they arrive back from abroad. The government estimates that more than 1.4 billion duty-free cigarettes are brought into the SAR each year, with a duty potential of HK$1.13 billion.
But in June and July, undercover audit agents at the Lowu checkpoint found 32 residents carrying more tax free cigarettes than the approved limit, but none was checked by Customs officers when they arrived in Hong Kong.
The commission also questioned a "weakness" in the department's policy that allows those caught to either pay a $16 duty and licence fee of $1.60 per pack, or surrender the items. As most popular discount cigarette brands sell for $10 per pack in duty-free shops, the abusers still get them cheaper than the market price of $32 per pack.
"Urgent action is needed to rectify the weakness, to ensure that adequate penalties are imposed," the report said.
