The government is expected to reconvene the Tax Reform Committee this month and adopt a milder approach to dealing with proposed energy and environment taxes to facilitate the reform, Ministry of Finance officials said yesterday.
Minister of Finance Lee Sush-der (李述德) said the ministry was willing to make major concessions to remove resistance when the committee next meets.
The panel, put in charge of overhauling the nation’s taxes and due to complete their work at the end of the year, has not met since the Cabinet was reshuffled last month.
The committee was instructed on Aug. 3 to explore non-tax measures to encourage energy conservation and cut greenhouse gas emissions after its original plan riled the business community.
“The ministry is committed to the green tax reform,” Lee said by telephone.
“All [sides] agree on the need to reform, but differ on the tax rates. We’re willing to make concessions as long as they do not sabotage the goal,” Lee said.
The task force has proposed imposing incremental energy and environment taxes to reduce carbon emissions by 8.9 million tonnes over the next decade.
Daigee Shaw (蕭代基), president of the Chung-Hua Institution for Economic Research, which was commissioned to conduct the research, has called for a NT$9.55 energy tax and a NT$0.45 environment tax for each liter of gasoline consumed in the first year.
The taxes will then go up each year until they reach NT$24.12 and NT$4.53 respectively in the 10th year, similar levels to Japan and South Korea, and boost the state coffers by more than NT$800 billion (US$24.8 billion).
Local media reported last week that the government intends to halve the rates and use the extra revenues to subsidize low-income families and fund other tax cuts.
Lee declined to confirm the figures, saying premature revelations of the bottom line would weaken his bargaining chips.
Shaw, who arrived at the original rates by pricing NT$2,000 for each tonne of carbon emissions, said a cut of less than 50 percent was acceptable.
To defuse resistance, the committee reportedly would exempt energy exports from the environment levy.
Local media said the compromise was aimed at reducing the impact of the reform on the petrochemical industry.
Preston Chen (陳武雄), chairman of the Chinese National Federation of Industries (工業總會), has warned the green tax — as it stands now — could hurt industries and economic growth.
Deputy Minister of Finance Chang Sheng-ford (張盛和) said the committee has yet to decide when to meet because Vice Premier Eric Chu (朱立倫) has the final say.
“The ministry will convene the meetings at the vice premier’s convenience when submitting the proposal,” Chang said by telephone.
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
TRANSFORMATION: Taiwan is now home to the largest Google hardware research and development center outside of the US, thanks to the nation’s economic policies President Tsai Ing-wen (蔡英文) yesterday attended an event marking the opening of Google’s second hardware research and development (R&D) office in Taiwan, which was held at New Taipei City’s Banciao District (板橋). This signals Taiwan’s transformation into the world’s largest Google hardware research and development center outside of the US, validating the nation’s economic policy in the past eight years, she said. The “five plus two” innovative industries policy, “six core strategic industries” initiative and infrastructure projects have grown the national industry and established resilient supply chains that withstood the COVID-19 pandemic, Tsai said. Taiwan has improved investment conditions of the domestic economy
Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day