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Misconception: Main function of raising tobacco tax is to generate the governments income Truth: Tobacco causes nearly 7,000 deaths and HK$5.6 billion economic losses every year in Hong Kong
Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and betting, and typically make up a relatively small and volatile portion of state and local and, to a lesser extent, federal tax collections