The Cabinet is planning to increase the size and scope of the state-controlled Development Fund, allowing it to service not only large, high-tech companies but also the nation's small and medium-sized companies, a government official said yesterday.
The government will also use the fund to help small and medium-sized companies make inroads in the markets of the nation's political allies in Latin America, Council for Economic Planning and Development Chairman Hu Sheng-cheng (
"In the past, our funds were only available to large companies which produced high-tech products, but now we want to help smaller companies too, even if they are not involved in high-tech industries," said Hu, who is also a minister without portfolio.
"This is just the first step. We are also planning to encourage businessmen to increase their investments in Southeast Asian countries," Hu said.
Hu made the remarks yesterday at a press briefing on the nation's industrial development environment, which is also one of the topics of the "Sustainable Economic Growth Conference" to be held on July 10 and July 11.
During the press briefing, Hu also took the opportunity to assure foreign investors that the government was considering revising the Alternative Minimum Taxation Law (
The possibility of the government imposing a minimum income tax on foreign investors' equities gains dampened local stock markets last week, prompting the Cabinet to ask the Ministry of Finance, the Financial Supervisory Commission and the central bank to investigate the matter.
According to the new law, the nation will impose a minimum income tax of between 10 percent and 12 percent on companies and 20 percent on high-income individuals, effective Jan. 1 this year.
However, some analysts are concerned that the new tax mechanism could scare off foreign investors, with negative consequences for the nation's economy.
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