Taiwan will not increase its business tax from the current five percent within the next three years to help fund a nationwide annuity plan for the elderly, the state-run Central News Agency reported, citing Premier Vincent Siew.
Siew's remark, which came during a visit to Panama, follows an Economic Daily News report on Monday that Taiwan may be forced to raise the business tax rate to 5.5 percent to help finance the plan. Siew said the government will reevaluate the financing of the annuity program after three years, the agency said.
A media report of possible tax increases drew criticism from opposition politicians and raised concerns among members of the KMT, who fear the move could derail the party's bid to win Taiwan's presidential election which will be held in March next year.