Thu, Mar 03, 2005 - Page 10 News List

Cabinet decides on higher tax for tobacco products

CNA , TAIPEI

Renewing efforts at countering and preventing hazards associated with tobacco, the Cabinet yesterday passed draft amendments to the Tobacco Control Act (菸草防治法) and the Tobacco and Liquor Tax Law (菸酒稅法).

Cabinet Spokesman Cho Jung-tai (卓榮泰) said at a news briefing that the amendments are will double the "health tax" on tobacco products, which will also help raise money for the nation's cash-tight national health-insurance program.

The price of a pack of cigarettes will be hiked by at least NT$5 if the revisions are approved by the legislature.

Based on the revised laws, cigarette taxes are to be increased from NT$5 to NT$10 per pack.

Revenues

It has been estimated that the hike will add about NT$6 billion to the government's tax revenues annually.

Referring to the world's first global public-health treaty -- the Framework Convention on Tobacco Control (FCTC) -- which came into force on Feb. 27, Cho indicated that a tax increase on cigarettes is regarded as the most effective measure in reducing cigarette consumption among every class of consumers, especially teenagers.

Ratified

Even though Taiwan is a not a member of the World Health Organization, which implemented the FCTC, the Legislative Yuan ratified the convention on Jan. 14 to demonstrate the country's commitment to public-health issues.

According to a survey conducted by the Bureau of Health Promotion under the Department of Health, the number of smokers in Taiwan is estimated at 4.89 million.

The country spends some NT$30 billion a year on smoking-related illnesses that take the lives of an estimated 18,000 people annually, the survey shows.

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