<strong>China: Taiwan Proposes Tobacco Tax Hikes</strong>

Source from:  Global Tax News  05/15/2013

The Government has approved legislation, which will now require parliamentary approval, to raise the tobacco tax and the Health and Welfare Surcharge in Taiwan, thereby hiking the TWD70 (USD2.35) current average price of a pack of cigarettes by TWD25.

The amendments to the Tobacco Hazards Prevention Act would increase the present TWD1,000 Surcharge imposed on every 1,000 cigarettes to TWD2,000 (or TWD40 on each pack), while the tobacco tax on each pack would reach TWD16.8, a rise of TWD5.

The Department of Health has confirmed that the tax increases are part of government measures to fund health services and raise health standards in Taiwan, and it has forecast that smoking in the country will fall by some 20 percent as a result of the measures.

The Department also said that the level of taxation on cigarettes, and their price, will still remain relatively low by international standards, and that, with the predicted fall in cigarette smoking, the Government was likely to see a net fall in revenue of up to TWD585m. Enditem