SEOUL, KOREA - The central committee of Saenuri party held a creative economic policy forum ‘Amendment to a reasonable taxation on cigarettes’.
Its aim is to push to make tough price policies of decreasing the smoking rates in response to the growing trend in the rates while our cigarette price is the lowest of OECD countries. Also, the forum is based on the thought it is the time to change the cigarette price policies for National Health Promotion.
A national member of the standing committee of Saenuri party, Jung Yeon-tae, said, “Please watch the issue of this forum with attention. We will continue to work hard until we have a root/fundamental alternative, not stop here. Also, we will give scrupulous endeavors in revision of the relevant regulations.” in his welcoming speech.
A chairman of the central committee of Saenuri party, Kim Tae-hawn, followed the welcoming speech and said, “We hope we can have a reasonable price policy in cigarettes through this forum. Also, we expect this forum will be a beginning of an improvement of the system and a new policy making that can contribute to peoples’ health.”
A congress member, Lee Man-woo, who announced the keynote said about a view that taxation on cigarettes is regressive against people’s income and a debate that increasing the cigarette tax is a tax boost to ordinary persons. “It may appear regressive in the short run, but it will become a graduated income effect in the long term. It is necessary to increase the cigarette tax for minimization of the national resistance to taxation and consumptively political debates. Also, we need indexed one to stop dropping consistently in the effective rate of tax for future.”
Jung Young-ho who is a member of Korea Institute for Health and Social Affairs expressed his opinions on the necessity of positive cigarette price policies in his presentation. Also, he stated that the Ministry of Health and Welfare as well as the Ministry of Strategy and Finance need to have more responsibility giving abroad examples on the cigarette price policies in France.
In the topic presentation, he suggested that we should calculate both price indexes which includes cigarettes and which does not include cigarettes in the price survey together and use the latter indexes for the Social Security policies.
The forum went on to discuss about the pros and cons of taxation in cigarettes and share the individual expertise about what is the effective process of legislation and taxation. The participates was Jung Gyeong-su, the president of the Korean Smoker’s Association, Kim Seon-taek, the president of Korean Taxpayers Federation, Im Jong-gyu, the chief of the Bureau of Health Policy in the Ministry of Health and Welfare, Bae Jin-hwan, the chief of Local Taxes Policy in the Security Administration and so on.
In this forum, the voices opposing increasing the cigarette price were quite heard.
Mr. Kim, the president of Korean Taxpayers Federation said, “Over 7 trillion won is already collected in taxes of cigarettes, and is it really necessary to increase the price on social costs grounds We should concern about non-pricing policies for reduction in the smoking rates first.” giving the example that the smuggling scale have jumped after 25% raise of the cigarette price in Greece.
Also, Mr. Jung, the president of the Korean Smoker’s Association said, “High price of cigarettes does not really mean a low smoking rate such as Ireland which has the higher cigarette price than over 5 times ours. Only 1% of Fee for National Health Promotion is used for anti-smoking education. We should straighten such fund operation out before a discussion on the price increase.”
Mr. Jung of Saenuri party said in the interview with the Korea IT Times, “The forum hold to the effect to raise the cigarette price based on that experts from each field and the public have a bond of agreement. We will legislate the related bills through consultations on how much increase the price with Ministry concerned and continue to make effort.”
The focus is now on whether the issue on increase of the cigarette price will end in a glib talk by being conscious of the voting public or will succeed in arranging welfare funds and securing tax revenues and make positive changes to give back it.
