TAIWAN INCREASES TOBACCO TAX
Taiwan’s government recently doubled the “special health tax” imposed on tobacco products in an effort to reduce the number of smokers and smoking-related diseases in Taiwan. Under the amendments made to the Tobacco and Liquor Tax Law passed recently by the Legislative Yuan, an NT$ 500 (approximately US$ 15) “special health fee” will be charged per every 1,000 cigarettes. The original fee was merely NT$ 250. Meanwhile, the fee for loose tobacco, cigars and other tobacco products was increased from NT$ 250 to NT$ 500 per kilogram. Thus, the health tax levied on a pack of cigarettes has increased from the previous NT$ 5 to at least NT$ 10.
According to the Government, ninety (90%) percent of the funds collected from these fees will be directed into Taiwan’s national health insurance program as a safety fund, while the remaining ten (10%) percent will be allocated to the central and local governments to help fund efforts targeted at health problems caused partially by the increase of smoking in Taiwan, to pay for a crackdown on counterfeit cigarettes, to combat tax evasion on tobacco products and for social welfare.
The tax increase is expected to generate as much as NT$ 6 billion (approximately US$ 187,500,000) in additional tax revenues for Taiwan’s national health-insurance program while resulting in a decrease in the sale of tobacco products by three (3%) percent to five (5%) percent for every ten (10%) percent increase in price.
Meanwhile, Taiwanese legislators have also recently decided to retain proposed amendments to the Tobacco Hazards Control Act and to refer these proposals for a second reading and further consideration. The Tobacco Hazards Act currently restricts promotional activities with respect to tobacco products.
Under these new amendments, if ultimately accepted and passed, however, smoking will be absolutely prohibited in offices and public indoor spaces where more than three people are present and certain restrictions will additionally be placed on smoking outdoors, such as on school grounds.
Search
English