Fri, Apr 27, 2012 - Page 12 News List

Securities houses slam revised capital gains tax plan

NO RELIEF:Futures companies also panned the plan, saying nothing has been done to ensure investors keep their money in Taiwan or to keep trading volumes high

By Crystal Hsu and Amy Su  /  Staff reporters

Wang said the version was too compromising to be agreed to by the salaried classes, who pay a consolidated income tax, and will deepen society’s hostility toward the rich.

If the government failed to tax securities gains, it will be difficult to convince people that upcoming tax reformation, such as capital gains tax on land investments, would be able to go further, Wang added.

“If the government always compromises to suit the rich, President Ma will fail to fulfill his campaign promises,” Wang said.

Meanwhile, civic groups also said the Taiwan Securities Association’s move to oppose the tax would block tax reformation and hurt the nation’s progress.

“If rich people earning money from the asset market do not need to be taxed, why should salarymen pay income tax?” Taiwan Labor Front (台灣勞工陣線) secretary-general Son Yu-lian (孫友聯) said.

In response to the securities representatives’ threat to initiate a public protest next month, civic groups said they would not rule out doing the same during the tax declaration period.

Convener of the Anti-Poverty Alliance (反貧困聯盟) Chien Hsi-chieh (簡錫堦) said he expects Liu to hang on in the upcoming wars in the Legislature.

“I think the current pressure raised by business heavyweights has isolated her,” Chien said.

However, Chien said he believes Liu’s stand would go down in history.

The Chinese National Federation of Industries (工商協進會), which had a meeting with Chen and Cabinet ministers on Wednesday, said it needed more time to form an opinion, adding that more business leaders in the industrial and commercial sectors would meet with Minister of Finance Christina Liu this afternoon to gain a better understanding of the issue.

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