Fri, Jan 12, 2018 - Page 12 News List

Treasury tax collection rate down on businesses

By Crystal Hsu  /  Staff reporter

The National Treasury Administration last month collected NT$107.9 billion (US$3.64 billion) in taxes, a NT$30.7 billion decrease from a year earlier due to a fall in business and corporate income taxes, the Ministry of Finance said on Wednesday.

The ministry attributed the decline to tax returns issued to public and private sector companies.

For the whole of last year, tax revenue increased 0.4 percent to NT$2.23 trillion, a record high exceeding the ministry’s budget target by 3.6 percent, or NT$77.4 billion, the report showed.

Last year’s surplus could rise to NT$96 billion, as some tax payments were postponed to this month, Deputy Minister of Finance Su Jain-rong (蘇建榮) said.

“The excess does not mean that the ministry is richer, but it reduces its debt burden, as the central and local governments have proposed budget deficits,” Su said.

The ministry is pushing for an increase of the business tax from 17 percent to 20 percent, because there is no guarantee that taxes would exceed predictions every year, Su said.

Business income tax revenues last year fell 1.9 percent to NT$500.9 billion, while personal income tax payments softened 3.1 percent to NT$480.6 billion, the report said.

Securities transaction tax last year bucked the trend and staged a 26.8 percent improvement from 2016 to NT$89.9 billion, the highest in six years, the report said.

The daily transaction value more last year than doubled to NT$146.3 billion on the Taiwan Stock Exchange and rose 44 percent to NT$89.4 billion on the over-the-counter Taipei Exchange after the government cut the tax on day trading by half, the report said.

The ministry is mulling extending the tax cut, which is due to expire in April, but it would not be retained for seven years as the Financial Supervisory Commission has suggested, Su said.

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