To ensure the funds are used appropriately, the central government could hold, cut or add the funding based on the performance of local governments.
In addition to the two fundings, local governments would receive nearly NT$40 billion more in tax revenues as the central government plans to allow special municipalities to keep the same percentage (60 percent) of the national tax of inheritance and gift tax as that retained by townships, cities and villages.
Currently, special municipalities can keep 50 percent of the tax, while townships, cities and villages can retain 80 percent.
Counties and cities would also keep all of the land value incremental tax.
Currently, counties and cities are required to be levied 20 percent of the tax.
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