The Ministry of Finance plans to expand a tax refund program for foreign tourists and reduce land and house tax preferences to stimulate private consumption and boost the treasury.
The ministry is likely to ease rules governing a tax refund policy for foreign tourists who purchase commodities and take them home. At present, tourists can reclaim the 5 percent business tax on commodities only if they intend to use the goods themselves.
The Ministry of Transportation and Communications said last week it would extend the rebate to goods for commercial purposes.
Minister of Finance Lee Sush-der (李述德) told the legislature on Monday that he supported measure and that it could take effect later this month.
“The ministry endorses the proposal to expand tax returns and is studying related details that could be promulgated in mid-March,” Lee told the Finance Committee.
Later in the day, Deputy Minister of Finance Chang Sheng-ford (張盛和) said the Global Refund Group in Sweden was interested in delivering the service on the government’s behalf. It provides similar services to 35 countries.
Chang said the finance ministry was weighing the proposed commission.
Meanwhile, the ministry intends to increase house and land levies on the rich, in response to a suggestion from the tax reform committee. The committee agree on Monday night that the minimum tax rate for commercial properties should be raised from 3 percent to 4 percent, while the lowest rate for clinics, law firms and the like should be raised from the 1.5 percent to 2 percent.
Chang said the tax reform, which still needs legislative approval, could take effect in 2011 and contribute an extra NT$16 billion (US$462 million) to the state coffers annually.
The proposed revision was aimed at distributing wealth more equitably since some house and land tax preferences are obsolete, Chang said. Property values would be revised every two years rather than every three years, he said.
The ministry collected NT$71.6 billion tax revenue last month, up 32.9 percent, or NT$17.7 billion, from the same period last year, because of the holiday effect, the statistics division said. The Lunar New Year holidays fell in February last year, but in January this year.
Tax revenue so far this year is down 18.4 percent, or NT$32.8 billion.
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