When the government announced that it would sharply raise the price of cigarettes to around 8,000 won within 10 years, criticism is pouring out on President Moon Jae-in. What is the reason?
The Ministry of Health and Welfare announced on the 27th that the 5th National Health Promotion Comprehensive Plan (Health Plan 2030, 2021-2030), which contained the health policy directions and tasks for the next 10 years, announced that it would increase the price of cigarettes to about 8,000 won within 10 years. .
The Ministry of Health and Welfare announced that the goal of the 5th Comprehensive National Health Promotion Plan is to extend the health life of Koreans from 70.4 years old in 2018 to 73.3 years old in 2030.Accordingly, the tobacco health promotion fee was raised to reduce the price of cigarettes by the Organization for Economic Cooperation and Development (OECD). He said he would raise it to the average level of 8,000 won.
Since the OECD average cigarette price is 7.36 dollars (8130.59 won), the price of cigarettes, which is currently 4500 won, is expected to rise by more than 3500 won. If the OECD average cigarette price rises, there is room for further increase.
Then, many of the smokers are blaming President Moon. President Moon made a pledge to lower cigarette prices during the last presidential election. Are smokers’ claims true?
When the Park Geun-hye administration announced plans to increase the price of cigarettes, local tax, and resident tax, etc. ? The rich and large corporations must increase the tax burden so that the general public can accept the tax increase,” he posted. Three months later, in September 2014, he said, “Why are you worried about how much cigarette prices are rich?” This means that the increase in cigarette prices was defined as a’treatment of the common people’.
President Moon was a politician who was sensitive to the cost of cigarettes. In the interview book “South Korea Asks,” published in January, 2017, when he was a candidate for the president, the increase in cigarette prices was defined as tyranny by the government.
Interviewer Moon Hyung-ryul said, “Every presidential election, a lot of common people’s policies are introduced, but the Park Geun-hye administration raised cigarette prices by an average of 80 percent, making it difficult to appease the troubles of the common people,” President Moon said. He said, “It’s not just the price of cigarettes, but the indirect tax that burdens the common people should be lowered and the direct tax should be raised appropriately.” In fact, he insisted that tobacco prices should be lowered.
But ten days before the presidential election, President Moon’s position changed subtly. At a TV debate on April 28, 2017, when Hong Joon-pyo, then presidential candidate Hong Joon-pyo, asked for his opinion on the pledge to “reduce cigarette prices,” President Moon, who was also the Democratic Party presidential candidate, said, “The increased tobacco tax will take precedence over a reduction in cigarette prices. I will use all of them for the purpose of promoting national health. Also, for the elderly and low-income people, I will prepare separate measures as if supplying duty-free cigarettes to the military.” In the position of lowering the price of cigarettes, he turned to’freeze the price of cigarettes’.
After Moon’s inauguration, the government’s keynote was’keep cigarette prices’. In fact, former Deputy Prime Minister Kim Dong-yeon and Minister of Strategy and Finance said at a personnel hearing on June 7, 2016, “I know that smoking cessation is effective due to the high elasticity of cigarette prices. We agree on equity issues for low-income families and the burden of tobacco prices, but policy consistency is also an important issue.” said. He has stated his position to maintain the price of cigarettes.
Considering such a situation, one can guess the reason why the Ministry of Health and Welfare said it would raise the price of cigarettes to around 8,000 won within 10 years.
The opinion of the Ministry of Health and Welfare may be contained in the announcement of the Ministry of Health, “I want to raise the price of cigarettes at once in consideration of public health and tax revenue, but I will not raise it right now, considering the face of President Moon, who once said that he would lower the price of cigarettes.”
With or without this intention, President Moon will not be free from the criticism that the current government has passed the political burden of raising cigarette prices to the next or next regime if the current government does not raise the price of cigarettes.