TAIPEI: Parliamentary approval was received on January 11 for the Taiwanese Government’s proposals to hike cigarette and inheritance taxes, to find the extra funds needed to finance a long-term elderly care program.
The first proposal would increase cigarette tax by TWD20 (USD0.63) per pack of 20 cigarettes. The taxation of a pack of cigarettes in Taiwan currently consists of a cigarette tax of TWD11.80, plus a health and welfare surcharge of TWD20. Under the proposal, the surcharge would remain unchanged.
In addition, the country’s current 10 percent inheritance and gift tax rates would be increased to a maximum of 20 percent. The rates would rise on a progressive basis, depending on the size of the bequest or gift.
It is expected that the additional annual tax revenue received from the rate increases will be some TWD28.8bn, to be used to provide a stable funding source for the Government’s Long-term Care Services Act.
