Lawmakers double surtax on tobacco

Lawmakers approved the proposed rule to jack up the surcharge, called “health and wealth donation,” from NT$5 to NT$10 for a pack of cigarettes regardless brands.

The health tax will be increased to NT$500 (US$15.20) per 1,000 cigarettes and each kilogram (2.2 pounds) of tobacco and cigars.

The lawmakers’ final decision vetoed an earlier proposal from local suppliers who had lobbied for differential surtax raise based on unit prices.

Domestic tobacco suppliers had hoped for lower surtax rates for local brands and higher rates for imported ones. The sweeping surtax hike is expected to generate NT$6 billion extra income for the government, which is required to allocate 90 percent of the additional surtax revenue for the national health insurance program and the remaining 10 percent for central and local governments to promote anti-smoking campaigns. Health authorities also hope that higher cigarette prices would help curb smoking and therefore reduce related diseases.

However, many smokers who couldn’t kick the habit have started building their stocks before the prices go up.

Yet the newly passed rules represented a major victory scored by anti-smoking organizations.

They are also intensifying pressure on lawmakers for a plan to extend a smoking ban to cover all indoor public places, including meeting rooms and recreational facilities to protect non-smokers.

The bill is expected to face escalated debate for parliamentary approval since tobacco suppliers are known to have also stepped up lobbying against the extended smoking ban.

Smoking is currently banned in designated public areas such as hospitals, schools, theaters, libraries, office buildings, and elevators.

Like in many other nations, lung cancer has long been a leading cause of death in Taiwan.

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