Vice Premier Paul Chiu (邱正雄) said yesterday that the Cabinet would not announce a decision on whether it would cut the stock transaction tax until after a Cabinet meeting tomorrow.
Executive Yuan Spokeswoman Vanessa Shih (史亞平) dismissed media reports that the Cabinet and the Ministry of Finance (MOF) were at odds over the issue, with Minister of Finance Lee Sush-der (李述德) reportedly favoring a tax cut while the Cabinet remained cautious.
“The issue has been always under deliberation. We have not said anything about slashing or not slashing the stock transaction tax. A decision will be made based on professional assessment,” Shih said.
The ministry echoed Shih’s statement, saying it was weighing the pros and cons of the move and that the Cabinet would have the final say.
Vice Minister of Finance Chang Sheng-ho (張盛和) said last night that the ministry did consider lowering the tax to bolster the stock market after the benchmark TAIEX shed 233.92 points yesterday.
Some pundits and investors blamed Lee for the slump, after saying on Monday morning that the government would lower the tax but modifying his statement on Monday eve by saying the government was still discussing the issue.
The proposed tax cut has drawn mixed reactions, with supporters hailing it as an effective remedy to boost the local bourse and opponents expressing doubts that it could have a long-term positive effect if the economic climate remained bleak.
Chang said the planned cut could also take on a different form, such as a fixed rate or an authorization that empowers the authorities to adjust the levy for a certain period of time, depending on the stock market’s performance.
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