Taiwan’s securities transaction tax continued to post lower-than-expected revenue for last month, with January-to-July revenue from the tax marking the lowest level during the same period in seven years, the Ministry of Finance said yesterday.
This showed the securities transaction tax is unlikely to reach its budgeted allocation of NT$126.5 billion (US$4.23 billion) this year, a ministry official said.
Revenue from the securities transaction tax dropped to the lowest level since the same period in 2005, totaling only NT$43.2 billion in the first seven months, down 24.6 percent from the same period the previous year, the ministry said in its monthly report.
“The global economic uncertainties and the issue of a securities capital gains tax dragged down revenue from the securities transaction tax for this year,” Hsu Ray-lin (許瑞琳), deputy director of the ministry’s statistics department, told a press conference.
The trend of falling securities transaction tax revenue was different from that of other major tax revenues, as revenues from individual income tax and business taxes in the first seven months were at their highest levels in history.
Despite the slowing domestic economy this year, Hsu said the strong business tax revenue came from the nation’s growing economic scale, while the individual income tax revenue was a lagging indicator reflecting last year’s better sentiment.
Overall tax revenues increased 26.5 percent from a year earlier to NT$88.4 billion, with total tax revenues for the first seven months reaching NT$1.334 trillion, up 6.2 percent year-on-year, the highest level ever, ministry data showed.