The capital gains tax proposal approved by the Cabinet on Thursday will not be referred to the legislature for review right away, because the Ministry of Finance needs to explain the difference between its initial version and the final version to Chinese Nationalist Party (KMT) lawmakers, Executive Yuan Secretary-General Lin Yi-shih (林益世) said yesterday.
Delaying sending the amendment to the legislature for a couple of days does not mean the Executive Yuan would make further changes to the proposal after its approval at Thursday’s Cabinet meeting, Lin said.
“There were some adjustments made to the ministry’s initial proposal, which warrant explaining so KMT lawmakers will understand how the ministry’s initial ideas were revised by the Cabinet,” he said.
Lin said the Executive Yuan has not set a timeframe for passage of the amendment, adding that it seemed unlikely that it would clear the legislature this session, which has less than two months to go before going into recess.
Several KMT lawmakers have presented their own proposals on a capital gains tax.
KMT Legislator Alex Tsai (蔡正元) suggested raising the tax-free threshold for individual investors from NT$4 million (US$136,800) to NT$6 million, lowering the tax rate from between 15 percent and 20 percent to 10 percent, allowing taxpayers to have their taxation cut in half if they hold shares in excess of three years and extending the period for taxpayers to offset losses to five years from the three years the Executive Yuan suggested.
KMT Legislator Lai Shyh-bao (賴士葆) said he would initiate an amendment to the Securities Transaction Tax Act (證券交易稅條例) to lower the 0.3 percent tax rate to 0.2 percent.
KMT Legislator Tseng Chu-wei (曾巨威) has proposed a progressive tax rate of 5 percent to 40 percent for individual investors who sell initial public offering investments for the first time; whose total income excluding securities income is more than NT$3 million; who earn less than NT$500,000, but make at least NT$50 million in securities transactions a year; and whose annual transaction amount in futures and shares exceeds NT$100 million.