A proposal to cover long-term care costs by increasing taxes on cigarettes by NT$20 (US$0.63) per pack is expected to pass its final vote in the legislature this week.
The legislature is scheduled to deliberate on proposed amendments to the bill on long-term care services for the nation’s older and vulnerable citizens in a committee today, which includes increasing estate, gift and tobacco taxes.
A vote on the proposal on Wednesday is expected to pass.
According to the draft, the estate and gift taxes would be increased from 10 percent to 20 percent, while the tobacco tax would be increased from NT$590 to NT1,590 per 1,000 cigarettes. The additional revenue would be used to finance a long-term care fund.
The estate and gift taxes are expected to increase revenue by NT$6 billion and the tobacco tax by NT$15.8 billion, the Ministry of Health and Welfare said.
Taxes on individual packs of cigarettes are to rise from about NT$11.8 to NT$31.8, which is expected to lead to a corresponding increase in market prices, the ministry said.
The tax hikes are expected to generate NT$21.8 billion in revenue, enough to cover the cost of long-term care needs for this fiscal year, which are estimated at NT$17.7 billion for the initial stage of “long-term care services program 2.0,” it added.
Chinese Nationalist Party (KMT) Legislator Chiang Wan-an (蔣萬安) said that although he believes the tax hikes are a “done deal,” he continues to have reservations as to whether they are a financial solution, adding that the taxes are “unstable sources of revenue from year to year.”
“The wealthy are already moving their assets to offshore tax havens and fiscal problems will surely resurface in five years’ time. Making smokers pay more taxes to support long-term care is a perverse way to encourage smoking, and raising prices would only exacerbate rampant tobacco smuggling,” Chiang said.
New Power Party Legislator Hsu Yung-ming (徐永明) said he is supporting an increase to the estate and gift taxes on the condition that the legal mandate is written with effective policy implementation and follow-up.
“Regarding the tobacco tax, responsible agencies have not clarified how raising prices could reduce the smoking population and serve as a source of revenue at the same time; as such, its instability as a revenue source will be an inevitable problem,” he said.
The Ministry of Finance’s estimates that the tobacco tax increase would reduce the annual quantity of cigarettes consumed by 330 million packs, Democratic Progressive Party Legislator Lin Ching-yi (林靜儀) said, adding that the tax hike is “good public health policy” and generating sufficient revenue is “a small problem for the moment.”
Finding enough qualified nurses and caretakers is an urgent issue, which should be addressed by encouraging young people to begin careers in those fields, she added.
Taipei has once again made it to the top 100 in Oxford Economics’ Global Cities Index 2025 report, moving up five places from last year to 60. The annual index, which was published last month, evaluated 1,000 of the most populated metropolises based on five indices — economics, human capital, quality of life, environment and governance. New York maintained its top spot this year, placing first in the economics index thanks to the strength of its vibrant financial industry and economic stability. Taipei ranked 263rd in economics, 44th in human capital, 15th in quality of life, 284th for environment and 75th in governance,
Greenpeace yesterday said that it is to appeal a decision last month by the Taipei High Administrative Court to dismiss its 2021 lawsuit against the Ministry of Economic Affairs over “loose” regulations governing major corporate electricity consumers. The climate-related lawsuit — the first of its kind in Taiwan — sought to require the government to enforce higher green energy thresholds on major corporations to reduce emissions in light of climate change and an uptick in extreme weather. The suit, filed by Greenpeace East Asia, the Environmental Jurists Association and four individual plaintiffs, was dismissed on May 8 following four years of litigation. The
A former officer in China’s People’s Liberation Army (PLA) who witnessed the aftermath of the 1989 Tiananmen Square massacre has warned that Taiwan could face a similar fate if China attempts to unify the country by force. Li Xiaoming (李曉明), who was deployed to Beijing as a junior officer during the crackdown, said Taiwanese people should study the massacre carefully, because it offers a glimpse of what Beijing is willing to do to suppress dissent. “What happened in Tiananmen Square could happen in Taiwan too,” Li told CNA in a May 22 interview, ahead of the massacre’s 36th anniversary. “If Taiwanese students or
The New Taipei City Government would assist relatives of those killed or injured in last month’s car-ramming incident in Sansia District (三峽) to secure compensation, Mayor Hou You-yi (侯友宜) said yesterday, two days after the driver died in a hospital. “The city government will do its best to help the relatives of the car crash incident seek compensation,” Hou said. The mayor also said that the city’s Legal Affairs, Education and Social Welfare departments have established a joint mechanism to “provide coordinated assistance” to victims and their families. Three people were killed and 12 injured when a car plowed into schoolchildren and their