April 27, 2024
Retail & Consumer
Tobacco tax revenue to hit W3tr
[THE INVESTOR] Revenue from taxes levied on cigarettes is forecast to reach 3 trillion won (US$2.8 billion), government data showed on Aug. 2.
Starting in January 2015, Korea jacked up the price of cigarettes by 80 percent from 2,500 won per pack to 4,500 won, in an effort to curb smoking.
Following this move, taxes collected from the sale of individual cigarette packs jumped from 354 won to 841 won.
According to the data by the Ministry of Health and Welfare, revenue from taxes levied on tobacco increased from 2.4 trillion won in 2015 to 2.9 trillion won in 2016, with numbers set to go up again this year.
The ministry forecasts the government could collect 3.06 trillion won in 2017.
By Alex Lee and newswires (alexlee@heraldcorp.com)
Starting in January 2015, Korea jacked up the price of cigarettes by 80 percent from 2,500 won per pack to 4,500 won, in an effort to curb smoking.
Following this move, taxes collected from the sale of individual cigarette packs jumped from 354 won to 841 won.
According to the data by the Ministry of Health and Welfare, revenue from taxes levied on tobacco increased from 2.4 trillion won in 2015 to 2.9 trillion won in 2016, with numbers set to go up again this year.
The ministry forecasts the government could collect 3.06 trillion won in 2017.
By Alex Lee and newswires (alexlee@heraldcorp.com)
