Vice Premier Paul Chiu (邱正雄) vowed yesterday to overhaul the nation’s inheritance tax with a top rate of 40 percent within the next six months.
Chiu made the comments yesterday after launching the administration’s tax reform committee, which has been tasked with reviewing and revamping the tax system to make it more favorable to economic development, more equitable distribution of wealth and other goals — but without raising tax revenues.
Additional measures to be implemented once tax incentives for businesses are cancelled should also be formulated within the next six months, while new policies on the alternative tax system should be completed within a year, Chiu said.
The committee, consisting of 20 government officials, academics and industrial leaders, will seek to meet President Ma Ying-jeou’s (馬英九) campaign pledge to overhaul the tax system to enhance the nation’s international competitiveness and pursue social fairness and justice.
Premier Liu Chao-shiuan (劉兆玄) said in the opening address that the nation’s fiscal state leaves much to be desired, as debts sustained by central and local governments stood at NT$4.48 trillion (US$131.5 billion), equivalent to 34.2 percent of GDP.
On average, the tax rate on Taiwanese accounted for 14 percent of annual income, lower than that in other countries, the premier said, without elaborating.
In a subsequent statement, the Ministry of Finance said the committee would discuss whether to impose energy and business windfall taxes, abolish the industrial promotion statute, and cut the estate and gift taxes, among other items.
A ministry official said some items on the agenda seemed contradictory, such as environmental protection amid measures to boost the economy.
The official said that the panelists would try to carry out their mission without raising overall tax levels.
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