Taiwan Tobacco and Liquor Corporation Introduction
The tobacco and liquor monopoly in Taiwan originated during the Japanese rule. In 1898, the Governor-General of Taiwan not only maintained the existing opium monopoly but also expanded the scope of the monopoly to include food salt and camphor. In January 1901, it merged the existing Taiwan Pharmaceutical Company, the Taiwan Salt Bureau, and the Taiwan Camphor Bureau to establish the "Monopoly Bureau of the Governor-General of Taiwan." The Governor-General further incorporated cigarettes and alcoholic beverages into the monopoly in 1905 and 1922, respectively. In 1942, matches and weights and measures were also included, and in 1943, petroleum was regulated as a monopoly product. Therefore, prior to the restoration of Taiwan, the monopoly products included cigarettes, alcoholic beverages, opium, food salt, camphor, matches, petroleum, and weights and measures. The Tobacco and Alcohol Monopoly Bureau was the institution responsible for the production, transportation, and sales of tobacco and alcohol, meeting the societal demand while enforcing laws regarding tobacco and alcohol monopolies. Its affiliated organizations, distribution units, and permitted retailers were spread throughout Taiwan, creating a well-established marketing network. The profits generated from the sales were paid into the national treasury, fulfilling dual economic and fiscal responsibilities. Over the years, it has operated efficiently, with the profits from the monopoly consistently holding a pivotal position in the national tax revenue. According to the "Temporary Regulations for Adjusting Functions and Businesses of the Taiwan Provincial Government," the Taiwan Tobacco and Liquor Monopoly Bureau was restructured on July 1, 1999, to report to the Ministry of Finance as the central authority, continuing its administrative management and production sales of tobacco and alcohol. In recent years, to respond to internationalization and liberalization, the government has considered abolishing the tobacco and alcohol monopoly, opening up production and manufacturing of tobacco and alcohol, and has successively announced the "Tobacco and Alcohol Management Act" and the "Tobacco and Alcohol Tax Act," effective from January 1, 2002, abolishing the monopoly system and returning tobacco and alcohol to the tax system. The "Company Act of Taiwan Tobacco and Liquor Corporation" was passed by the Legislative Yuan on April 25, 2002, and announced by the President on May 15, 2002; thus, the Tobacco and Alcohol Monopoly Bureau was restructured into the "Taiwan Tobacco and Liquor Corporation" on July 1, 2002. Source: Official Website of Taiwan Tobacco and Liquor Corporation.
