Luxury goods makers, including those in the home furnishings and auto businesses, yesterday said the proposed luxury tax “would not have much impact” on sales because their customers are seeking top-quality goods and could afford to pay a little extra.
That contradicts concerns raised by the European Chamber of Commerce Taipei (ECCT) that the tax could hurt car sales.
“Some clients are spending as much as NT$10 million [US$300,000] furnishing their homes. They will not frown on the extra tax,” said David Hsu (徐培庭), marketing director at New World Design Center (紐約家具設計中心).
Photo: Yang Ya-min, Taipei Times
“These customers do not only buy one piece of furniture; they are purchasing many pieces at the same time. That comes out at many zeros [in dollar terms],” he said by phone.
New World Design promotes itself as an operator of top-class furniture malls.
In December, the firm launched a new five-story mall in Neihu, Taipei, that spans 7,000 ping (23,100m2). That complements its three other malls — two in Sinchuang, New Taipei City (新北市), and another in Taichung.
The Neihu mall’s goal is to earn NT$1.4 billion in sales for the first year and that remains intact, Hsu added.
The Ministry of Finance has announced plans to impose a 10 percent luxury tax on the sale of certain expensive goods and services — such as home furnishings that cost NT$500,000 or more, as well as private jets, yachts and cars with a price tag of at least NT$3 million — starting in July at the earliest.
On Wednesday, the ECCT expressed concern over the imposition of a luxury tax on European vehicle importers during an hour-long meeting with Minister of Finance Lee Sush-der (李述德), Central News Agency (CNA) reported, citing ECCT chief executive Freddie Hoeglund and chairman Chris James.
CNA quoted an official at the ministry saying that 3,500 such vehicles were purchased last year and if the tax were imposed, the nation’s tax revenues would be boosted by an additional NT$1.5 billion.
However, the impact could be wider than the ministry’s estimates.
Automakers said that among the 32,000 high-end imported vehicles sold last year, 40 percent — or 13,000 units — were priced at NT$3 million or more.
Mercedes-Benz and BMW would take the biggest hit, said an official from Hotai Motor Co (和泰汽車) who wished to remain anonymous.
Hotai distributes the high-end Lexus models and it sold more than 6,000 cars last year, 500 of them from the LS series — the only model that carries a price tag of more than NT$3 million.
“The impact isn’t that huge to us, but consumer confidence will take a hit. They will wonder why on earth they have to shoulder the extra 10 percent,” he said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) secured a record 70.2 percent share of the global foundry business in the second quarter, up from 67.6 percent the previous quarter, and continued widening its lead over second-placed Samsung Electronics Co, TrendForce Corp (集邦科技) said on Monday. TSMC posted US$30.24 billion in sales in the April-to-June period, up 18.5 percent from the previous quarter, driven by major smartphone customers entering their ramp-up cycle and robust demand for artificial intelligence chips, laptops and PCs, which boosted wafer shipments and average selling prices, TrendForce said in a report. Samsung’s sales also grew in the second quarter, up
On Tuesday, US President Donald Trump weighed in on a pressing national issue: The rebranding of a restaurant chain. Last week, Cracker Barrel, a Tennessee company whose nationwide locations lean heavily on a cozy, old-timey aesthetic — “rocking chairs on the porch, a warm fire in the hearth, peg games on the table” — announced it was updating its logo. Uncle Herschel, the man who once appeared next to the letters with a barrel, was gone. It sparked ire on the right, with Donald Trump Jr leading a charge against the rebranding: “WTF is wrong with Cracker Barrel?!” Later, Trump Sr weighed
LIMITED IMPACT: Investor confidence was likely sustained by its relatively small exposure to the Chinese market, as only less advanced chips are made in Nanjing Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) saw its stock price close steady yesterday in a sign that the loss of the validated end user (VEU) status for its Nanjing, China, fab should have a mild impact on the world’s biggest contract chipmaker financially and technologically. Media reports about the waiver loss sent TSMC down 1.29 percent during the early trading session yesterday, but the stock soon regained strength and ended at NT$1,160, unchanged from Tuesday. Investors’ confidence in TSMC was likely built on its relatively small exposure to the Chinese market, as Chinese customers contributed about 9 percent to TSMC’s revenue last
LOOPHOLES: The move is to end a break that was aiding foreign producers without any similar benefit for US manufacturers, the US Department of Commerce said US President Donald Trump’s administration would make it harder for Samsung Electronics Co and SK Hynix Inc to ship critical equipment to their chipmaking operations in China, dealing a potential blow to the companies’ production in the world’s largest semiconductor market. The US Department of Commerce in a notice published on Friday said that it was revoking waivers for Samsung and SK Hynix to use US technologies in their Chinese operations. The companies had been operating in China under regulations that allow them to import chipmaking equipment without applying for a new license each time. The move would revise what is known
RSS