Cash-strapped local governments gave a mixed response yesterday to new legislation that gives them the power to tax businesses under their jurisdiction, local media reported yesterday.
The legislation, dormant for more than a decade, allows local governments to impose additional taxes on businesses that pose threats to the local environment or social order, the reports said. These businesses could include airports, nightclubs, health spas and even golf courses.
The new taxes can be used to promote environmental protection, tourism and education, the reports said, quoting Vice Minister of Finance Wang Te-san's (
However, under the resolution, local governments are forbidden from taxing public utilities such as water and electricity. In addition, no taxes can be imposed on public transportation services that operate beyond a single district.
Taoyuan County Commissioner Chu Li-luan (朱立倫) yesterday applauded the legislation saying he planned to tax Internet cafes, computer-game bus-inesses, pubs, oil refineries, power plants and golf courses. Chu said these activities pose risks to the environment and the public at large.
"The taxes will be drawn up in line with the principle that users are obligated to pay the fees and that revenue collected can be used to help those affected by these businesses," Chu said.
Despite voicing support for the legislation, many local leaders also warned that these new taxes may create investment barriers and drive away business.
Tainan Mayor Hsu Tain-tsair (
"The central government should not push the responsibility for increasing taxes on to local governments," Hsu said.
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