Tax revenue falls on bad weather and legal revisions

By Crystal Hsu  /  Staff reporter

Thu, Oct 10, 2019 - Page 12

The government last month collected NT$233.3 billion (US$7.56 billion) in tax revenue, down NT$10.6 billion, or 4.3 percent, from a year earlier, dragged by weaker corporate and personal income contributions, the Ministry of Finance said yesterday.

Revenue from corporate income tax fell 12.5 percent year-on-year to NT$69.5 billion, while personal income tax revenue fell 7.8 percent to NT$35.3 billion, ministry data showed.

Department of Statistics Deputy Director-General Chen Yu-feng (陳玉豐) attributed the retreat in corporate revenue to bad weather late last month which led to some companies postponing their tax filings to this month.

Revenue from personal income tax was lower due to legal revisions made last year, Chen said.

However, the decline in revenue last month was not a concern as revenue from the business tax, which is a gauge of domestic business activity, posted a 4.1 percent increase to NT$77.2 billion, Chen said.

Revenue from the securities transaction tax fell 3.4 percent year-on-year to NT$7.1 billion as lingering uncertainty over the US-China trade dispute sidelined some investors, Chen said, adding that average daily turnover on the local bourse shrank from NT$145.4 billion to NT$140.1 billion.

As a result, revenue from the securities transaction tax is unlikely to meet the target set for this year, she said.

Meanwhile, revenue from the land value increment tax soared 21.4 percent to NT$7.4 billion, as large transactions offset a 2.4 percent fall in the number of deals, the ministry said.

The land value increment tax is a key indicator of property market activity. In the first nine months, there were 438,505 deals, a slight increase of 0.5 percent compared with the same period last year, the ministry said.

From January to last month, the ministry had accumulated NT$1.87 trillion of tax revenue, up 0.6 percent from a year earlier, it said.