Suggestion 1: Ensure that tobacco additive regulations are based on scientific evidence and implemented in a practical and predictable manner.

In recent years, the government has been gradually developing a draft list of prohibited tobacco product additives, along with supporting implementation measures.

The industry supports the public health objectives of the Health Promotion Administration (HPA) under the Ministry of Health and Welfare (MOHW). At the same time, the industry seeks a regulatory framework that is grounded in sound scientific evidence and implemented in a clear, predictable, and practical manner.

While public health objectives should guide regulatory policy, regulatory clarity, implementation feasibility, and market stability are equally critical to ensuring that policy measures achieve their intended outcomes. Regulatory measures that impose prohibitions without clear scientific justification or without consideration of practical implementation challenges may undermine the credibility and enforceability of the regulatory framework.

Some additives included in the draft prohibited list occur naturally in tobacco leaves or are used in extremely small quantities to maintain product quality during manufacturing. Such minimal quantities do not impart any flavor. As a result, the current draft may not fully distinguish between additives that pose public health risks and substances that are inherent to tobacco processing. Before finalizing the proposed regulatory measures, the industry recommends that the HPA gather additional scientific evidence and fully consider industry feedback.

Prior to implementation, it is important to conduct careful assessments of proposed prohibited items. In addition, a phased implementation approach would help avoid unintended disruption to the lawful market while reducing the risk that sudden regulatory changes could shift consumer demand toward illicit products and further expand the illegal market.

Moreover, the draft does not clearly exclude tobacco products manufactured solely for export. As Taiwan has long maintained the capability to manufacture tobacco products for export markets, failure to clarify that the regulations do not apply to export-only products could unintentionally restrict export-oriented manufacturing activities that have no bearing on the domestic market. We recommend:

1.1   Establish a transparent scientific review and risk assessment mechanism for determining prohibited tobacco additives. Such a mechanism should clearly define the scientific criteria, testing methods, and enforcement principles used when assessing whether specific additives should be restricted.

1.2   Provide a reasonable transition period and clear implementation guidelines before new additive regulations take effect. Guidance on inspection priorities, testing standards, and compliance pathways would help reduce regulatory uncertainty and facilitate effective policy implementation.

Suggestion 2: Adopt a gradual and predictable approach to adjustments of the tobacco health and welfare surcharge.

In 2025, public discussion emerged regarding potential adjustments to the tobacco health and welfare surcharge. The industry recognizes the government’s need to balance public expenditure while maintaining stable fiscal resources. However, to ensure effective policy implementation, adjustments to tobacco-related taxes and surcharges should be designed and implemented in a reasonable, gradual, and predictable manner.

Abrupt or poorly calibrated tax increases can create unintended market distortions, including increased incentives for illicit trade. To safeguard both the stability of the tax base and overall market order, the government should conduct a comprehensive assessment of potential impacts on the illegal tobacco market and evaluate enforcement capacity before introducing policy adjustments.

A transparent and evidence-based approach to tax policy would help ensure that fiscal objectives are achieved while maintaining regulatory credibility and minimizing the risk of market disruption. We recommend:

2.1   Implement any adjustments to tobacco taxes and surcharges in a reasonable, gradual, and predictable manner. Before introducing such changes, the government should conduct comprehensive assessments of potential impacts on the illegal tobacco market, including the risk of increased illicit trade and the stability of the tax base.

Suggestion 3: Strengthen cross-ministerial coordination and enforcement capacity to combat illicit tobacco.

Illicit tobacco products undermine national tax revenue, increase consumer risks due to the absence of proper product testing and quality control, and disrupt the orderly functioning of the lawful market. According to the National Treasury Administration of the Ministry of Finance (MOF), the authorities seized 13.82 million packs of illicit tobacco products in 2025, an increase of approximately 2.61 million packs compared with 2024. These figures likely underestimate the true scale of the illicit market, as unreported cases remain difficult to quantify.

The emergence of heated tobacco products within Taiwan’s regulatory framework has further complicated enforcement efforts. Patterns of illicit trade and distribution have evolved as new product categories enter the market, requiring enforcement authorities to distinguish between conventional tobacco products and heated tobacco products during inspections. These developments create new operational challenges for frontline personnel and highlight the need to update enforcement practices and statistical monitoring methods to reflect changes in the lawful tobacco market.

Effective tobacco control policy requires not only a robust regulatory framework but also strong enforcement mechanisms capable of clearly distinguishing lawful products from illicit ones. In this regard, enforcement efforts should focus on strengthening post-market monitoring systems, including labeling compliance, tax declaration, and product traceability mechanisms. At the same time, authorities should intensify inspections and penalties targeting unauthorized products and illicit supply chains to maintain regulatory credibility and ensure a fair, competitive environment.

As the regulatory framework for new tobacco products continues to evolve, enforcement capacity must adapt accordingly. Heated tobacco products involve multiple regulatory components, including devices, consumables, and cross-border logistics, which differ significantly from the regulatory considerations applicable to traditional tobacco products. To address these challenges, the government should strengthen coordination across relevant ministries and enhance professional training for frontline enforcement personnel.

Institutionalized training programs focusing on new tobacco products would improve enforcement personnel’s ability to identify lawful and unlawful products, understand supply chain dynamics, recognize common patterns of illicit trade, and conduct effective inspections. Case-based training and practical exercises could further strengthen operational capabilities.

In addition, improving the use of technology and data-sharing systems could enhance enforcement effectiveness. Digital tools and enhanced information-sharing mechanisms would support faster identification of illicit products and strengthen coordination among relevant enforcement authorities.

Strengthening coordination, training, and data-sharing mechanisms would help create a more comprehensive enforcement network capable of addressing evolving illicit trade risks. Such measures would also protect national tax revenue, preserve market order, and ensure that lawful businesses operate within a clear and fair regulatory environment. We recommend:

3.1   Establish a cross-ministerial coordination mechanism for illicit tobacco enforcement. This mechanism should integrate intelligence sharing and enforcement strategies among the MOF, MOHW, police authorities, customs, and local governments, while strengthening real-time reporting and risk analysis.

3.2   Develop specialized training programs for enforcement personnel addressing heated tobacco products and emerging illicit trade patterns. Such programs should strengthen frontline personnel’s ability to identify lawful and unlawful products, understand supply chain regulations, recognize common violation patterns, and conduct effective evidence collection.

3.3   Publish enforcement and seizure statistics on a regular basis. Public reporting should include data on seized finished products, raw materials, and related equipment in order to enhance transparency and strengthen public trust.

3.4   Strengthen coordination between central and local authorities to improve enforcement capacity and public awareness. Programs that enhance local enforcement capacity and increase public awareness would help prevent the expansion of the illicit tobacco market.