Taipei, March 9 (CNA) Department of Health (DOH) Minister Yeh Ching-chuan on Monday attributed a delay in implementing a mandatory increase in the health surcharge on cigarettes to a legal snag over how the measure will be enforced. Yeh told lawmakers that under existing law, the surcharge could not be imposed until cigarette vendors had sold their current inventories of tobacco products and would only take effect on new inventory.
The DOH would prefer, however, that cigarette vendors pay the tax on their existing inventories in advance, but such a procedure has no legal basis, Yeh said.
He promised to resolve the legal quandary as soon as possible to prevent the smuggling and hoarding of tobacco products due to the delay.
Once the legal issue is resolved, the surcharge will increase from NT$10 per pack of cigarettes to NT$20 and raise an estimated NT$25.2 billion (US$722.74 million) for the national health insurance program's reserves, Yeh said at the Legislative Yuan.
The legislature passed an amendment to the Tobacco Hazards Prevention Act on Jan. 12 that authorized the increase.
With cigarette prices now averaging NT$50 per pack, the average price of cigarettes is likely to increase to over NT$60 after the new surcharge comes into effect.
Yeh said last month that the mandatory hike might be implemented in March.
(By Elizabeth Hsu)
Videos
Post your feedback
