Gov't not mulling cigarette price hike or health tax on alcohol, says minister

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Gov't not mulling cigarette price hike or health tax on alcohol, says minister

Cigarettes are on display at a convenience store in Seoul on Jan. 15. [YONHAP]

Cigarettes are on display at a convenience store in Seoul on Jan. 15. [YONHAP]

 
The government on Saturday denied speculation that it plans to raise cigarette prices or impose a health tax on alcohol, saying no such measures are under review.
  
“The government is not currently considering raising cigarette prices or imposing a health surcharge on alcohol,” Minister of Health and Welfare Jeong Eun-kyeong said in a post shared on Facebook on Saturday. 
 

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Her remarks followed speculation that the government could raise cigarette prices to the average level of the Organisation for Economic Cooperation and Development (OECD) if it approves the sixth comprehensive national health promotion plan. 
 
“The plan only presents mid- to long-term policy direction set in 2021 and does not include any newly added tax measures,” Jeong said. “It simply reaffirms long-term tasks through 2030 and does not involve immediate implementation." 
 
Cigarette prices in Korea have remained at 4,500 won ($3) since 2015. The OECD average stood at 9,869 won as of 2023. The gap fueled speculation that prices could rise to around 10,000 won under the government’s long-term plan.
 
“Tobacco and alcohol price adjustments have a significant impact on people’s daily lives and the national economy,” Jeong said. “We will take a cautious approach after sufficient consultation and discussion." 


This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KO SEUNG-PYO [[email protected]]
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