Finance minister backs raising tax deduction

The minister of finance came out in support of a plan yesterday to increase the standard tax deduction for the nation's wage earners.

According to the National Tax Bureau, wage earners today are able to claim an annual tax deduction of up to NT$62,000. The new deduction would raise that amount to NT$80,000, thereby slightly reducing workers' taxable income.

Minister of Finance Yen Ching-chang (顏慶章) yesterday announced that his ministry will send the proposed amendment to the Income Tax Law (所得稅法) to the Legislative Yuan no later than Dec. 20 at the request of KMT legislator Chu Li-luan (朱立倫) and other opposition legislators.

The Legislative Yuan is scheduled to begin the third reading of the tax law following the plan's submission.

Meanwhile, the Ministry of Finance has delayed the ruling party's earlier decision to remove the tax-exempt status for soldiers and schoolteachers, because a consensus cannot be reached on the issue by different government bodies.

Chu, however, said yesterday that the finance ministry must pass the tax changes by the end of this year so all taxpayers can enjoy the benefits of the plan as soon as possible.