Business leaders yesterday urged the government to cut taxes and step up investment incentives to help Taiwan cope with an economic slowdown this year.
Chinese National Association of Industry and Commerce (工商協進會) chairman Lin Por-fong (林伯豐) made the plea during the group’s monthly meeting.
“What the government can do to help the nation out of an economic slowdown is do away with inappropriate taxes,” Lin said, citing the commodity tax and the stamp tax, as well as uneven tax burdens for domestic and foreign stock investors.
It is not reasonable for the government to set different capital gains tax rates for local and foreign investors, Lin said.
Local investors have to pay 28 percent on capital gains from cash and stock dividends, while their foreign peers need only pay 21 percent, the association said, adding the practice would sideline local investors.
It is also urging the government to spare retained corporate earnings from the 5 percent business tax, so that companies have greater financial muscle to meet expansion needs, Lin said.
The group said was still concerned about a potential electricity shortage, adding that Taiwan and Germany are the only two nations in the world that have declared a plan to abolish nuclear power.
“The price of producing offshore wind power is too high and the authorities should make it known how they decide feed-in tariffs,” Lin said.
The government should ensure a stable electricity supply at reasonable costs, so that companies in different sectors can thrive, he said.
The government should also consider raising the quota of migrant workers, and differentiate between domestic and foreign laborers when it comes to the minimum wage, the group said.
Taiwan should seek actively to join regional trade blocs and ink free-trade agreements with major partners so that Taiwanese goods can remain competitive internationally, the association said.
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