Different “Taxes” on New and Old Cigaret


National Taxation Bureau of Kaohsiung, Ministry of Finance (NTBK) stated the newly amended Tobacco and Alcohol Tax Act will come into effective on June 12 2017. At the beginning of implementation, there will be tobacco products manufactured in different periods and at different prices circling in the market. Only the cigarettes imported or manufactured after June 12 may be sold at the price comprising newly increased tax due to new tax imposed by the new law, as for the tobacco products suitable for the tax before such amendment shall be sold at the price without increased tax. Consumers shall pay attention to distinguish these two kinds of tobacco, in order to avoid extra payment.

NTBK further interpreted that, taking the paper cigarette of 20 sticks per pack as example, before implementation of new law, the tobacco tax imposed on each pack of cigarettes is NTD 11.8 [(NTD 590/1000 sticks) X 20 sticks]; after implementation of new law, the tobacco tax imposed on each pack of cigarettes will be adjusted to NTD 31.8 [(NTD 1590/1000 sticks) X 20 sticks]; that is , NTD 20 of tobacco tax will be imposed on each pack of cigarettes. Therefore, on each pack of cigarettes, the actual burdens are tobacco tax and tobacco surcharge, totaled NTD 51.8 (NTD31.8 of tobacco tax and NTD 20 of health and welfare surcharge of tobacco products).

NTBK especially reminded the customers of how to distinguish the cigarette products suitable for the new tax after such amendment? It’s very simple, just check out the pack box. If it is printed with “N51.8”, “T51.8” or “NT51.8” (any of the above three), or it is pasted with a sticker of 2cm x1cm <v:path o:connecttype="rect" gradientshapeok="t" o:extrusionok="f"> (illustration), then it is a pack suitable for new tax. In so doing, customers may protect their own rights. If people find old cigarette being sold at the new price, they may report or appeal to the Consumer service centers or other authority of the respective city, county or municipality or by consumer’s hotline (1950).

For relevant information of distinguishing the new and old cigarettes, you may go to eTax Portal, Ministry of Finance (https://www.etax.nat.gov.tw) or special area of “distinguishing new cigarettes from old ones” on the website of NTBK. You may also call the toll-free line (0800-000-321) for any question. [#207]

 

 

News release unit: The 3rd Examination Section, Title: Auditor, Name: Chen Jia-liang, Tel: (07) 7256600 ext. 8601

Reference URL:http://www.mof.gov.tw/Eng/Pages/Detail.aspx?nodeid=319&pid=74783