The ROC Cabinet approved proposed amendments May 9 raising the tax and health surcharge on tobacco products, in a move to reduce the social costs of smoking.
“According to Department of Health figures, health risks related to smoking figure prominently in the 10 leading causes of death in Taiwan,” Premier Jiang Yi-huah said. “Hikes in the surcharge and tax are needed to bring smoking rates down.”
The changes would lead to an NT$25 (US$0.85) jump in the cost of a pack of cigarettes once they become law. Revision to the Tobacco and Alcohol Tax Act would tax every 1,000 cigarettes or kilogram of other products such as cigars and cut tobacco at NT$840, up from NT$590. This would amount to a duty of NT$16.80 per pack, compared to the current NT$11.80.
An amendment to the Tobacco Hazards Prevention Act calls for a health and welfare surcharge of NT$2,000 per 1,000 cigarettes or kilogram of tobacco, double the current surcharge. This translates to NT$40 per pack against NT$20 at present.
“Although both laws are being revised simultaneously, the resulting prices for tobacco products are still lower than the World Bank’s recommended standard,” Jiang said.
“The DOH estimates that these adjustments could lead to a 20.8 percent reduction in the number of smokers, equivalent to 600,000 people.”
Surcharge revenues help pay the National Health Insurance fees of disadvantaged individuals, subsidize cancer screening for millions of citizens, support public shelters, provide treatment for 17,000 developmentally disabled children and patients with rare diseases, finance rural hospitals and maternal care programs, and cover the costs of 1.2 million child vaccinations and oral health services for 1.52 million elementary school students annually, he added.
Separately, the DOH Bureau of Health Promotion reported that in a nationwide telephone poll of 1,029 individuals over the age of 20 conducted in March and April, 62.1 percent of respondents favored increasing the surcharge on each pack of cigarettes. When they were informed of the uses to which surcharge monies are put, the approval rating went up to 82.6 percent. A total of 73.6 percent supported a raise in the surcharge of NT$20 or more.
Among smokers, 46 percent backed a higher surcharge, while 87.4 percent of women were in favor, compared to 77.5 percent of men. Support was strong in all regions: 81.7 percent in northern Taiwan, 83.2 percent in the central area, 82.7 percent in the south and 90.3 percent in the east and on outlying islands.
The BHP also found that only 6.4 percent of smokers reported buying cigarettes for less than NT$50 per pack, indicating that contraband cigarettes are not prevalent. (THN)
Write to Taiwan Today at ttonline@mofa.gov.tw