Thu, Jun 13, 2019 - Page 12 News List

Corporate income, commodity taxes boost tax receipts

EQUITY SLUMP:Tax revenue from securities transactions plunged as daily market turnover fell last month due to the US-China trade dispute

By Crystal Hsu  /  Staff reporter

Tax revenues rose 7.8 percent from a year earlier to NT$408.5 billion (US$13 billion) last month, as an increase in corporate income and commodity taxes offset a fall in stock transaction taxes, the Ministry of Finance said yesterday.

Corporate income taxes surged 22.1 percent to NT$165.6 billion, as companies reported improved earnings, Department of Statistics Deputy Director-General Chen Yu-feng (陳玉豐) said.

An increase in the corporate tax rate from 17 percent to 20 percent also lent support, Chen said.

Commodity taxes grew 7.4 percent to NT$16.1 billion, thanks to a rebound in vehicle sales, he said.

However, the state coffers saw an 18 percent decline in securities transaction taxes, as the combined daily market turnover of the Taiwan Stock Exchange and the Taipei Exchange shrank 22 percent annually to NT$135.4 billion last month, Chen said.

Foreign funds have fled the local bourse after Washington on May 10 raised tariffs on US$200 billion of Chinese goods and threatened more drastic measures to address their trade dispute.

If the trend persists, stock transaction taxes might miss the ministry’s target of NT$112.9 billion for this year, Chen said.

Land value increment taxes amounted to NT$9.3 billion last month, an increase of 10.4 percent year-on-year, as the number of property transactions improved by 3.6 percent to 58,212 deals, a ministry report showed.

For the first five months of the year, cumulative tax revenues reached NT$884.4 billion, an increase of 3.5 percent from the same period last year and ahead of the government’s annual budget by 5.8 percent, the ministry said.

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