Taiwan’s Legislative Yuan yesterday passed an amendment bill that hikes cigarette tax to help pay for the government’s long-term care program, according to a story on Focus Taiwan News Channel.
The amendment to the Long-term Care Services Act says that financial resources for long-term care services will be expanded by raising the cigarette tax by NT$20 (US$0.63) per pack of 20 cigarettes, from NT$11.8 to NT$30.8, and by doubling the country’s estate and gift tax rate from the current 10 percent to 20 percent
The tax hikes were proposed by the executive branch to ensure that the long-term care program was supported by a stable financial source.
The Ministry of Finance has estimated that the tax rate hikes will provide additional revenue of about NT$28.8 billion annually.
Legislator Wu Yu-chin of the ruling Democratic Progressive Party said after the passage of the amendment bill that there would be enough funds ‘for the establishment of long-term care facilities in the near future’.