Trade tax raises business wrath

Associations of Taiwan businesses operating in China yesterday squarely took aim at the proposed "national security tax" (國安捐) on investment in China while urging the government to grant them more aid and speed up the process of opening the direct "three links"(三通).

Even talk of levying such a tax "strikes a blow to the morale of Taiwan businessmen in China," said head of the Guangzhou Taiwan Business Association, Wan Hai-shui (萬海水).

President Chen Shui-bian (陳水扁) and his party could "say what they liked when they were an opposition party, but now they are in power they must talk responsibly," said Wan, who was talking at a meeting between leaders of Taiwan business association in China.

Head of the Taiwan business association in Shenzen, Lin Ching-hui (林清輝) said that in China, "Taiwan business people are afraid of being branded supporters of Taiwan independence," on top of which they now face the possibility of their own government levying a tax which "discriminates against Taiwan businessmen operating in China."

Lin said, "Although the government has said it has no plans at present to levy the tax, Taiwan businesses in China feel that it remains equivocal on the issue."

These comments came despite assurances from Vice Premier You Shyi-kun (游錫 ) on Wednesday that the tax was just the idea of one scholar, Chen Shih-meng (陳師孟), who is also deputy governor of the Central Bank of China, and the new government is not considering implementing such a policy.

He was joined yesterday by Mainland Affairs Council chief Tsai Ying-wen (蔡英文), who said the concept is not the policy of the MAC and is "unfair."

The businessmen were equally vocal on the opening of the "three direct links," with Guilin association head Tu Yung-sheng (杜永盛) saying that opening direct sea and air links would save Taiwan businessmen around NT$10 billion annually in transportation costs incurred by having to travel and transport goods to and from China via a third port.

He also said that if direct air links were opened, expatriate businessmen would be less inclined to relocate their families to China, as the time required for a home visit could be cut to 40 minutes.

On the issue of government assistance for the families of Taiwan businessmen, most of the association heads and lawmakers agreed that the government should do more to provide funds to build Taiwanese-style schools in places heavily populated with Taiwan business people like Donguang.

Tu also suggested that if direct sea links were opened, Taiwan businesses "could transport their semi-finished goods back to Taiwan for final assembly," ensuring that the essential elements of Taiwan industry remain within the country, said She.