Medical Expert Proposes Tax Hikes to Nearly Double Cigarette Prices in South Korea
What happened
A medical expert proposed tax hikes that would nearly double the price of a pack of cigarettes, raising it from 4,500 won to 8,500 won. The proposal was made to curb smoking rates, as cigarette prices have remained stable since 2015 despite rising incomes. The expert estimated that an 89 percent price increase could lower the adult smoking rate from 17 percent to 14 percent.
From asianews.network
Why it matters
The proposed increase could generate an additional 2.76 trillion won in annual tobacco tax revenue, which helps fund public health programs and firefighting services. The expert noted that South Korea's cigarette prices are among the lowest in the OECD when adjusted for purchasing power parity.
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Who's involved
- ParkVice president of the National Academy of Medicine of Korea who proposed the price increases
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- KT&GSpeculative
KT&G might face regulatory action and market price changes that affect its core tobacco and nicotine business model.