Fri, Apr 12, 2019 - Page 12 News List

Tax revenue falls amid weaker stock, business situation

By Crystal Hsu  /  Staff reporter

Tax revenue last month totaled NT$149.3 billion (US$4.84 billion) , a 10.9 percent decline from a year earlier, as stock transactions and business operations weakened, the Ministry of Finance said in a report yesterday.

Daily stock turnover averaged NT$134.5 billion last month, down 8.3 percent from a year earlier as an economic slowdown and trade disputes dampened confidence, the report showed.

A less-active market eroded stock transaction tax by 19.2 percent, or NT$7.6 billion, even though the benchmark TAIEX gained 2.33 percent, it said.

Business tax fell 2.7 percent to NT$71.3 billion as imports of chemicals and base metals declined, more than muting an increase in domestic consumer activity, it said.

Tax on land value gains shrank 17.9 percent to NT$7 billion due to fewer property transactions, the report said.

For the first quarter, the national treasury collected NT$363.6 billion in tax revenue, down 2 percent from the same period last year, but ahead of the budget target by 2 percent.

Claw machines lent support with a twofold contribution to entertainment tax, the ministry said.

Revenue from entertainment taxes rose 10 percent to NT$490 million from January to last month, with claw machines generating NT$90.58 million, almost single-handedly accounting for the pickup, it said.

The number of claw machine arcades nearly doubled to 8,213 in January from 4,589 in December last year, it said.

More sites have been added this year, although the pace has slowed, reaching 8,520 last month, the ministry said.

The trend is seen as unfavorable for the overall entertainment industry, as claw machine arcades do not need a lot of personnel to run and they might chill shopping interest.

Tax from property transactions grew 5.5 percent last quarter from a year earlier, with Kaohsiung outperforming the other five special municipalities with a 24 percent increase, the ministry said.

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