The legislature’s Finance Committee yesterday passed the first reading of an amendment to the Securities Transaction Tax Act (證券交易稅條例) that would suspend the transaction tax on corporate and financial bonds for another seven years, beginning on Jan. 1.
The Ministry of Finance said in a statement that the government announced on Jan. 31, 2002, that it would waive the transaction tax on these bonds to boost the international competitiveness of Taiwanese firms by lowering their funding costs. The measure was due to expire on Dec. 31.
The government decided to extend the tax waiver for another seven years because the nation’s capital markets have yet to recover to their level before the global financial crisis.
“It would not help the nation’s capital markets if we resumed the levy now,” the ministry said.