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Cabinet moves to increase cigarette surcharge

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At the Cabinet meeting today, the Executive Yuan approved a draft amendment to Articles 4 and 35 of the Tobacco Hazards Prevention Act which would increase the health and welfare surcharge on cigarettes. It will be sent to the Legislature for deliberation.

"The 10 leading causes of death in Taiwan reflect the high risk of smoking, and the medical expenses incurred from smoking-related illnesses have been enormous," Premier Jiang Yi-huah said, citing Department of Health (DOH) data.

To promote public health, the Tobacco Hazards Prevention Act mandates a biennial review of the medical health and welfare surcharge on a pack of cigarettes in light of the incidence of smoking-related diseases and tobacco consumption, the ratio of levies to retail prices for tobacco products, national income, the consumer price index and other relevant factors. Following the most recent review, the DOH has proposed raising the surcharge in the hope that higher cigarette prices will induce people to reduce or quit smoking and enhance protection from tobacco-related health hazards.

The DOH estimates that this surcharge adjustment will help lower the nation's smoking rate by 20.8 percent, lowering the smoking population by 600,000 and improving citizens' health, Jiang said. The premier also pointed out that revenues from the surcharge could benefit the public in various ways, including:

  • Subsidizing National Health Insurance premiums for those in economic difficulties
  • Helping millions of people receive life-saving cancer screenings
  • Supporting the operations of 13 public accommodation homes
  • Aiding 17,000 rare-disease patients and children with development delays
  • Funding the establishment of rural hospitals and medical centers for emergencies and severe illnesses as well as care centers for women and children
  • Providing vaccinations for over 1.2 million children and oral care services to 1.52 million elementary school students every year
  • Promoting health for the elderly and subsidizing local health care services
  • Improving assistance for tobacco farmers and workers in agriculture and related industries

The premier asked the DOH to rally public support for the amendment by publicizing these benefits.

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