Tobacco tax doubles to NT$20

Welfare organizations also expect that the increased government revenues will help fund healthcare projects for underprivileged people and low income families.

The Legislative Yuan passed revisions to the Tobacco Hazards Prevention Act that included the long-planned increase of the health surcharge on tobacco products despite opposition from suppliers.

Hsiao Mei-ling, director general of the Bureau of Health Promotion (BHP) under the Department of Health commented that the latest legislative move will contribute to the pursuit of social justice.

Following the increase in the surcharge, Hsiao said the price of a pack of cigarettes for most common brands will likely rise to NT$70 from the current NT$55, an increase that may be enough to discourage smoking.

“We are hopeful that raising the health and welfare surcharge on tobacco products will help reduce the number of smokers in the country,” Hsiao explained.

Even with the possibility of fewer smokers, Hsiao estimated that the higher surcharge will generate revenues of NT$38 billion annually.

According to Hsiao, revenues from the health surcharge have been primarily used to buttress national health insurance reserves, support social welfare services, crack down on smuggled or bootleg tobacco products, promote health, prevent tobacco related diseases, and give better compensation to tobacco farmers.

“Higher tobacco prices as a result of the surcharge increase will contribute to increasing revenues, which can be used in turn to subsidize cancer treatment and prevention, as well as medical services for the disadvantaged, those with rare diseases and those living in areas where medical resources are inadequate,” Hsiao added.

The price of tobacco in Taiwan is relatively low compared to some other countries, according to a BHP study.

The report said Taiwan spends about NT$45 billion annually on health insurance to cover treatment of diseases related to smoking.

According To the World Health Organization, non-smoking environments and high tobacco prices are the two most effective means of reducing tobacco use among young people.

A 1999 World Bank report stated that when the price of tobacco is raised by 10 percent, consumption decreases by 4 percent to 8 percent, and even by as much as 10 percent among youngsters.

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