"An increase in the price of cigarettes and the creation of a tobacco-free environment are expected to lead to a decrease in the consumption of cigarettes," said Lin Ching-li, director of the foundation's tobacco control division.

According to the World Health Organization, non-smoking environments and high tobacco prices are the two most effective measures to reduce tobacco consumption and smoking among young people.

Rebutting some tobacco companies' claim that increasing the price of cigarettes would result in rampant smuggling, the foundation insisted that this did not happen in the past when Taiwan increased the surcharge on cigarettes.

Taiwan first imposed what it called a welfare surcharge of NT$5 per pack on cigarettes in 2000, and in 2006 doubled the amount, with the revenues being used to fund social services programs.

Nonetheless, Lin noted, the price of cigarettes in Taiwan remains relatively low compared to other places. In Hong Kong, the average price of a pack of cigarettes is NT$125 and in New York it is NT$280, she said.

She said that in 1983 Hong Kong authorities began to increase tobacco taxes, which resulted in a drop in the smoking rate from 23 percent in 1982 to 14 percent in 2005.

Considering the average income of Taiwan citizens, the

price of a pack of cigarette should range between NT$80-NT$100, instead of the current average NT$60, she suggested.

The Executive Yuan in late October approved an amendment to the Tobacco Hazards Prevention and Control Act to increase the welfare surcharge on cigarettes from NT$10 to NT$20 per pack. The amendment is currently awaiting review and approval by the Legislative Yuan.

Other new regulations in the act, which will go into effect Jan. 11 next year, will expand non-smoking areas in schools, medical and financial institutions, government units, restaurants, transport stations and shopping centers.

Smokers who violate the regulations risk a fine of NT$10,000, and business owners who fail to post no-smoking signs in prohibited areas could face a maximum fine of NT$50,000.

A 1999 World Bank report stated that when the price of tobacco is raised by 10 percent, consumption decreases by 4 to 8 percent, and even by as much as 10 percent among youngsters, the anti-smoking foundation said.

Most of the revenues from the welfare surcharge is put into social services, including the National Health Insurance, which is suffering a serious deficit.

With the increase of the welfare surcharge, the Bureau of National Health Insurance is expected to receive an additional estimated NT$16 billion-NT$18 billion per year.

In addition to the welfare surcharge, a tobacco tax of NT$11.8 is also levied on each pack of cigarettes.

According to statistics compiled by the Department of Health, about 23 percent of Taiwan's population are smokers.