The national treasury collected NT$162.2 billion (US$5.18 billion) in tax revenue last month, up 16.4 percent from a year earlier, as companies and individuals recorded income gains amid improved economic conditions, the Ministry of Finance said yesterday.
Business income taxes totaled NT$3.8 billion last month, more than double a year earlier, while personal income taxes jumped 30 percent to NT$30.6 billion, the ministry’s report showed.
The ministry attributed the rise to delayed tax payments linked to dividends and bonuses from February to last month.
Business taxes reached NT$65.4 billion last month, representing a 15 percent increase from a year earlier, due partly to higher private consumption, the report said.
However, land value increment taxes contracted 10.1 percent to NT$8.7 billion for the year, down 6.7 percent for the first quarter, affirming a sluggish property market, the report said.
For the first quarter, overall tax revenue advanced 5.8 percent to NT$353.4 billion, the highest level in 15 years, as corporate income taxes gained 82.5 percent and personal income taxes reported a 6.9 percent upturn, the report said.
The equities market also fared softly, as securities transaction taxes dropped 10.1 percent to NT$8.7 billion last month from a year earlier, the report said, adding that tax revenues were 13.4 percent less than the same period last year for the past quarter.
The retreat suggested room for improvement, the report said, although financial authorities have announced deregulation plans to boost trading volume.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
Hong Kong authorities ramped up sales of the local dollar as the greenback’s slide threatened the foreign-exchange peg. The Hong Kong Monetary Authority (HKMA) sold a record HK$60.5 billion (US$7.8 billion) of the city’s currency, according to an alert sent on its Bloomberg page yesterday in Asia, after it tested the upper end of its trading band. That added to the HK$56.1 billion of sales versus the greenback since Friday. The rapid intervention signals efforts from the city’s authorities to limit the local currency’s moves within its HK$7.75 to HK$7.85 per US dollar trading band. Heavy sales of the local dollar by
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to
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