Taiwan Tobacco and Liquor Corporation_Tobacco and Wine Monopoly Bureau

Taiwan's monopoly system originated during the Japanese colonial period. In 1898, the Taiwan Governor-General's Office not only maintained the existing opium monopoly but also expanded its scope. It successively implemented salt and camphor monopolies, and in January 1901, it merged the original Taiwan Pharmaceutical Factory, Taiwan Salt Bureau, and Taiwan Camphor Bureau to establish the "Taiwan Governor-General's Office Monopoly Bureau." The Taiwan Governor-General's Office further included cigarettes and alcoholic beverages into the monopoly scope in 1905 and 1922, respectively. In 1942, matches and weights and measures were brought under monopoly, and in 1943, petroleum was also designated as a monopoly item. Consequently, before Taiwan's Retrocession, there were eight monopoly items: cigarettes, alcoholic beverages, opium, salt, camphor, matches, petroleum, and weights and measures. The Taiwan Tobacco and Wine Monopoly Bureau (TTWMB) was an integrated agency responsible for the production, transportation, and sales of tobacco and alcohol. It was tasked with producing and selling tobacco and alcohol to meet public demand and enforcing tobacco and alcohol monopoly laws. Its subordinate agencies, tobacco and alcohol distribution units, and licensed retailers were spread throughout Taiwan, forming a very robust marketing network. The profits generated from the public sale of tobacco and alcohol were all turned over to the national treasury, serving both economic and fiscal functions. Over the years, its operations demonstrated significant performance, and the monopoly profits remitted to the national treasury consistently held a pivotal position in national tax revenue. In accordance with the "Provisional Regulations for the Functional Business and Organizational Adjustment of the Taiwan Provincial Government," the Taiwan Provincial Tobacco and Wine Monopoly Bureau was reorganized on July 1, 1999, to become subordinate to the Ministry of Finance, the central competent authority for industry-specific matters, continuing to carry out tobacco and alcohol administrative management and production/sales operations. In recent years, to adapt to internationalization and liberalization, the government deliberated on abolishing the tobacco and alcohol monopoly and opening up tobacco and alcohol production. It successively promulgated the "Tobacco and Alcohol Administration Act" and the "Tobacco and Alcohol Tax Act," which came into effect on January 1, 2002. This abolished the monopoly system, bringing tobacco and alcohol back under the tax system. The "Taiwan Tobacco and Liquor Corporation Act" was passed by the Legislative Yuan on April 25, 2002, and promulgated by the President on May 15, 2002. Consequently, the Taiwan Tobacco and Wine Monopoly Bureau was restructured into "Taiwan Tobacco and Liquor Corporation" on July 1, 2002. Source: Official website of Taiwan Tobacco and Liquor Corporation