• May 26, 2024

Huge tax increase in Taiwan

 Huge tax increase in Taiwan

Taiwan’s Ministry of Finance said yesterday that the price of cigarettes would be increased by NT$20 (US$0.60) per pack on the back of a 169 percent increase in tax, according to a story in The Taiwan News.

The announcement followed the passing by the Legislature of the third and final reading of an amendment to the Tobacco and Alcohol Tax Act.

The increase is due to take effect on June 20.

The amendment raises the cigarette tax from NT$590 per 1,000 cigarettes (per kilogram) to NT$1,590, which translates into a tax per pack of NT$31.8, up from the current NT$11.8.

The Finance Ministry said the increase was expected to generate NT$23.3 billion in additional annual tax revenue, which would be used to fund a long-term care program for seniors.

Finance Minister Sheu Yu-jer said earlier this year that he believed the policy would also help curb tobacco consumption and promote public health.