The Health and Welfare Surcharge shall be imposed on tobacco products in the following amounts:
(1) Cigarettes: NTD 1,000 every one thousand sticks. (2) Cut tobacco: NTD 1,000 every kilogram.
(3) Cigars: NTD 1,000 every kilogram.
(4) Other tobacco products: NTD 1,000 every kilogram or NTD 1,000 every one thousand sticks, whichever is higher.
The central competent authority and the Ministry of Finance shall, once every two years, invite scholars and experts who specialize in finance, economics, public health, and other relevant fields to review the amounts of the aforementioned Health and Welfare Surcharge based on the following factors:
(1) The status of diseases attributable to smoking activities, including their morbidity and mortality, as well as the medical costs thereby incurred upon the National Health Insurance;
(2) Total amount of tobacco product consumption and the smoking rate;
(3) Ratio of tobacco taxes to average retail prices of tobacco products;
(4) National income and consumer price index; and
(5) Other relevant factors affecting the prices of tobacco products and the prevention and control of the tobacco hazards.
If the amounts prescribed in the first paragraph, upon being reviewed by the central competent authority and the Ministry of Finance pursuant to the second paragraph above, are considered necessary to be increased, the increased amounts shall first be approved by the Executive Yuan and then passed the examination in the Legislative Yuan before being stipulated.

The collected surcharges shall be used for the National Health Insurance reserves, for cancer prevention and control, for improving the quality of medical care, for subsidizing the areas in shortage of medical resources, medical expenses for rare diseases, and the health insurance fee for the persons in economic difficulties, for the prevention and control of tobacco hazards at both central and local government levels, for promoting public health and social welfare, for tracking down smuggled or inferior tobacco products, for preventing the evasion of tobacco taxes, for providing assistance to tobacco farmers and workers of relevant industries. The regulations for allocating and using the collected surcharges shall be formulated by and between the central competent authority and the Ministry of Finance.
The definitions of the areas in shortage of medical resources and the persons in economic difficulties in the preceding paragraph shall be stipulated by the central competent authority.

The Health and Welfare Surcharges of tobacco products shall be collected by the collecting agencies of tobacco and alcohol taxes upon the collection of those taxes. The taxpayers, the exemptions, the refunds, and the collections and the penalties relating to the above-mentioned surcharges shall be decided and implemented in accordance with the Tobacco and Alcohol Taxes Act.