The Executive Yuan today passed draft amendments to the Tobacco and Alcohol Tax Act that would increase the tobacco tax from the current NT$590 (US$20) to NT$840 (US$28.50) per 1,000 sticks of cigarettes, or per kilogram of cut tobacco, cigars or other tobacco products.
The Ministry of Finance said the purpose of collecting taxes and surcharges on tobacco and alcohol is to protect the health of citizens by discouraging consumption of the substances. Moreover, the levies serve as an important source of government revenues. For these reasons, the Executive Yuan also pushed to raise the tobacco surcharge in line with draft revisions to the Tobacco Hazards Prevention Act. However, Premier Jiang Yi-huah pointed out that both tax and surcharge after increase would still be on the low side of levels recommended by the World Bank.
The premier asked the Department of Health and the Ministry of Finance (MOF) to strengthen communication with lawmakers to win swift legislative approval. He also instructed other government agencies to coordinate their efforts and plan complementary measures to curb and prevent tobacco trafficking and hoarding.