Page 79 - TAIWAN TOBACCO CONTROL ANNUAL REPORT 2019

6. 1% shall be used for investigation of smuggling of inferior tobacco products and prevention of tax evasion for tobacco products. On May 10, 2017, the president promulgated the amended provisions set forth in Article 7, 20, and 20-1 of the Tobacco and Alcohol Tax Act. Pursuant to these provisions a tobacco product tax of NT$ 1,590 per 1000 sticks or kilograms is levied. These amendments took effect on June 12, 2017 upon ratification by the Executive Yuan. Tobacco Health and Welfare Surcharges income in past years Tobacco surcharges of NT$ 5 per pack have been levied since 2002. The surcharge was increased to NT$ 20 per pack in 2009. (Fig. 1-12) Fig. 1-12 Tobacco Health and Welfare Surcharges income 34,438,096 34,740,891 34,289,28235,592,971 InJanuary2009,thenewregulationsonthe prevention of the hazards of tobacco stipulated that the smoke surcharge be raised to NT$20 in June. In February 2006, the smoke surcharge 24,565,517 was raised to NT$10. 20,111,981 20,109,344 17,209,766 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 In June 2017, the smoke surcharge was raised to NT$20. 34,367,517 32,333,472 28,127,982 32,748,259 33,122,827 In January 2002, the smoke surchargewasNT$5perpack. 10,422,549 9,654,513 10,547,688 7,909,073 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Year Key results of Tobacco Health and Welfare Surcharges utilization 1. National Health Insurance (NHI) reserves: Revenues allocated from January 2002 to 2018 helped reduce insurance premiums of employees and employers all over Taiwan by 4%, greatly easing the burden generated by premiums. Health insurance finances have seen serious long- term shortages due to structural imbalances of revenues. As a result of the infusion of tax surcharge revenues, the increase of health insurance premiums which was originally planned for 2004 could be delayed until 2010, seamlessly in sync with the second-generation health insurance reform. In addition, around NT$ 13.96 billion were earmarked as medical expenses for NHI disease diagnosis and treatment in 2018. The surcharge which accounts for 91% (NT$ 15.4 billion) of all infusions utilized as NHI reserves has turned into an indispensable source of health insurance finance consolidation. 2. Health insurance premium subsidies for financially challenged individuals: 198,000 individuals received subsidies amounting to NT$ 800 million in 2018. Recipients included 192,000 low- and mid-income families and 5,625 financially challenged individuals in arrears of premium payments to provide basic insurance coverage for the aforementioned beneficiaries. 77 Annual revenue (Unit:1,000 NTD) Reducing the Demand for Tobacco