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KMT pushes tax act amendment

Premier Chang Chun-hsiung, left, shakes hands with Legislative Speaker Wang Jin-pyng during their meeting in Taipei yesterday. PHOTO: CNA

The Chinese Nationalist Party (KMT) caucus said yesterday that it would advance a proposed amendment to the Value-added and Non value-added Business Tax Act (加值型及非加值型營業稅法) -- which would allow authorities to lower business taxes on corn, wheat, barley and soy beans -- to a second reading during tomorrow's plenary session to help stabilize soaring commodity prices.

Lin Yi-shih (林益世), director of the KMT's Central Policy Committee, said the caucus would also urge Legislative Speaker Wang Jin-pyng (王金平), a KMT member, to convene cross-party negotiations next Tuesday to discuss the amendment.

The proposed amendment could then pass its third reading next Wednesday or Thursday, Lin said, adding that the caucus would support the Cabinet's plan to stabilize commodity prices even if it meant doing away with value-added and non-value-added business taxes.

The Cabinet passed and sent the proposed amendment to the legislature in December, but the proposal was not discussed before the legislative recess on Dec. 21.

The amendment was proposed in support of the government's effort to stabilize commodity prices and in view of the fact that the nation imports nearly 100 percent of its supplies of the four staples, whose prices are closely linked to that of crude oil.

KMT caucus whip Alex Fai (費鴻泰), who attended the conference, blamed the Democratic Progressive Party (DPP) caucus for the legislature's failure to pass the proposed amendment last year.

However, when approached for comment yesterday, Wang said the legislature failed to pass the amendment because of opposition from the Taiwan Solidarity Union.

Wang said he would hold cross-party negotiations to discuss the proposal as soon as possible.

DPP deputy caucus whip Kuan Bi-ling (管碧玲) said the DPP caucus supported the KMT proposal.

Kuan said the Cabinet proposed the amendment during the last session of the previous legislature, but the KMT had opposed it. The KMT appeared to have changed its mind, Kuan said.

Meanwhile, Premier Chang Chun-hsiung (張俊雄) yesterday replaced Vice Premier Chiou I-jen (邱義仁) as the head of the Cabinet's Price Stabilization Commission, which Chiou had led since December, saying the move showed the Executive Yuan's resolve to combat price rises.

Chang made the announcement at the Cabinet's weekly meeting and convened the commission later yesterday.

The Government Information Office (GIO) also said in a statement that Chang had instructed officials at the Ministry of Economic Affairs to help construction companies obtain badly needed gravel and steel.

This came after a construction association threatened to down tools and take to the streets for three days of protests if the government failed to act, the GIO said.

Additional reporting by Shih Hsiu-chuan and Rich Chang
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