The Ministry of Finance yesterday reached a consensus with local governments to permanently cut the incremental land-value tax -- a capital gains tax on property transactions -- by 20 percent.
\nNelson Yu (游能淵), deputy director-general of the ministry's Taxation Department, told a press conference yesterday that the top tax rate on land transactions will be permanently reduced from 60 percent to 40 percent.
\nThe central government, in addition, agreed to compensate local governments for their tax losses in light of the reduction, Yu said.
\nHe added that the permanent tax-rate proposal will soon be submitted to the Executive Yuan before a legislative approval to facilitate the new taxation scheme.
\nThe ministry hopes to enact the new taxation scheme in January when the three-year proposal to temporarily halve the land tax ends so that the tax rate wouldn't go through a drastic up-and-down in a short time.
\nIn late 2001, then premier Chang Chun-hsiung (
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