A Ministry of Finance-based task force on national taxation and finance held its first meeting in Taipei yesterday, with government officials, academics and representatives from social groups exchanging views and drafting an agenda for future discussion.
The 16-member task force chose six issues — three related to taxation and three related to finance — as the first topics to be discussed.
Implementation of some form of capital gains tax is foremost in the public’s mind, and added to this were a review of current income taxes, and the feasibility of replacing the commodity tax with an energy tax and other supplemental measures.
On the financial side, the three issues scheduled for discussion were a review of the nation’s debt management, local government financial problems, and exploring measures to activate state-owned assets.
During the meeting, most members agreed that narrowing the wealth gap and expanding the tax base to strengthen the government’s financial resources were the task force’s major missions.
The capital gains tax is the priority issue, and there is an expectation that the task force will quickly be able propose a draft for the new taxes.
However, the ministry has not been able to promise if the capital gains tax will be the first issue on which the task force will reach consensus.
The ministry has set a September deadline for reforming the nation’s finances.
Several government officials said the process of reform should be step-by-step and take the impact on domestic industries into consideration.
“Picking up these six issues does not mean the task force will not discuss other issues in the current taxation and finance system,” Minister of Finance Christina Liu (劉憶如), who is also the convener of the task force, told reporters after the meeting.
Other important issues, such as corporate tax rates, problems under the current corporate income tax regime, the adjustment of government special funds and ways of encouraging the private sector to participate in build-operate-transfer projects, could also be discussed if members find it necessary, Liu said.
The task force will form separate study groups for each of the issues on the list by the end of next week, and head to different cities and counties to meet with local representatives, including government officials, elected representatives, industrial representatives and academics.
“I hope the first small meeting will take place by the middle of next month,” she said.
Representatives of major industry and commerce groups, who a few days earlier voiced the fear that their voices would be ignored in the new wave of finance reform, will be able to take part in these separate study groups, Liu said.
At the same time, task force members will still be able to raise other issues at subsequent meetings if further issues need to be added to the list.
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