No new taxes
The Cabinet has promised not to levy any new taxes amid the current domestic economic downturn, a business leader said yesterday.
"Vice Premier Lin Hsin-yi (林信義) offered the promise during a breakfast meeting with representatives from the local business community earlier in the day," said Huang Mao-hsiung (黃茂雄), chairman of the Chinese National Association of Industry and Commerce, one of the three leading domestic trade associations.
Lin was quoted as having told all those present at the meeting that the government is fully aware of the present economic woes and will not propose any new taxes at this critical juncture in Taiwan's development.
However, Lin rejected a proposal from the businessmen to lower the business income tax rate from the current 25 percent to 15 percent.
TSMC sales improve
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world's biggest supplier of made-to-order chips, said sales in October climbed by almost half from a year ago as Christmas-season demand increased.
Sales last month rose 48 percent to NT$15.2 billion (US$439 million) from NT$10.3 billion in the same period a year ago. They increased a fifth from NT$12.8 billion in the previous month.
The company's sales beat the NT$14.9 billion expectation of UBS Warburg analyst William Dong, who added that he expects TSMC's sales in November and December to fall from October levels.
Orders from companies in the personal-computer business have increased because inventories are low, he said.
TSMC said it raised its forecast for shipments of silicon wafers, which are used to make chips, in the fourth quarter. The company declined to give details.
In its third-quarter earnings announcement last month, TSMC said that wafer shipments will fall in the fourth quarter by a percentage in the ``low teens.''
Exports increase
Taiwan's exports rose 0.6 percent in October from a year ago to $US11.5 billion, from $US11.28 billion in September, official data showed yesterday.
The increase was lower than September's year-on-year growth of 27.4 percent, the finance ministry said.
Imports in October rose 5.0 percent from a year earlier to $US10.19 billion, after a 36.3 percent rise in the previous month, it said.
It said the trade surplus in October fell 24.3 percent from a year earlier to $US1.31 billion, compared with a 36.5 percent fall recorded in September.
NT dollar called overvalued
Taiwan should depreciate its currency to spur its exports, the legislative caucus of the opposition TSU said yesterday.
TSU Legislator Wu Tung-sheng (吳東昇) said at a news conference held by the party caucus that the NT dollar is overvalued in comparison with currencies of neighboring countries.
Over the past decade, Wu said, the South Korean won has depreciated about 78 percent against the US dollar, compared to a 74 percent depreciation of China's yuan and a 68 percent devaluation of the Thai baht.
During the same period, the NT dollar has depreciated only 33 percent against the US dollar.
"The figures indicate that the New Taiwan dollar is relatively strong after the 1997-98 Asian financial crisis," Wu said.
NT dollar rises
The New Taiwan dollar closed at 34.596 against the greenback on the Taipei foreign exchange market Thursday, compared to 34.685 Wednesday on turnover of US$540 million.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
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