Taiwan May Levy 20% Health Hazard Tax On Cigarettes (fwd)

[Robert Weissman <rob@essential.org>]

Taiwan May Levy 20% Health Hazard Tax On Cigarettes
by Dow Jones Newswires
Date: Tuesday, 5/25/99

TAIPEI (AP)--Health officials have proposed a 20% health hazard tax on
cigarette sales to help pay part of smokers' medical bills, an official
said Tuesday.

The proposed tax could add an estimated NT$2.5 billion (US$1=NT$32.754)
each year to a national medical insurance fund, said Yang Chih-liang,
deputy director of the National Health Administration.

Cigarette makers and importers could choose to add all or part of the new
tax to retail prices, he said.

The proposed tax still needs the legislature's approval, and lawmakers
from various political parties have indicated their support, Yang said.

Health authorities proposed the new tax on cigarettes because there has
been sufficient evidence that smoking could cause health hazards, but
decided not to tax wine and liquor because some medical reports have
suggested benefits from moderate alcohol consumption, Yang said. Taiwan's
anti-smoking groups have increasingly pressured authorities to help
contain smoking.

Early this month, the government-run cigarette monopoly was forced to
suspend a plan to market light cigarettes after it was accused of
targeting sales at women and teenagers.