Tax revenue generated from securities transactions and vehicle sales declined sharply last month from a year earlier amid uncertainties over US trade policies, the Ministry of Finance said on Tuesday.
Securities transaction tax revenue was NT$23.9 billion (US$797.73 million) last month, down by a double-digit percentage compared with the year-earlier result for the fifth consecutive month, ministry statistician Liu Shun-rong (劉訓蓉) said, attributing the retreat to a high base effect.
However, the figure was still the highest in 11 months, as the TAIEX rebounded 5.8 percent last month, supported by US approval of Nvidia Corp’s sales of less-advanced chips to China, positive sales guidance from Taiwan Semiconductor Manufacturing Co (台積電), and US tariff agreements with Japan and other countries, Liu said.
Photo: An Rong Xu, Bloomberg
However, market activity remained subdued due to lingering concerns about the US’ tariff rates on Taiwanese goods, she said.
Average daily trading was NT$412.9 billion last month, down 29.4 percent year-on-year and marking a sixth month of consecutive declines, she said.
However, early data for this month suggest a continued market recovery, with average daily trading value rising to about NT$497.8 billion, slightly exceeding the year-earlier figure.
Liu expressed cautious optimism that increased trade volume could help revive securities transaction tax revenue, although she said that the situation remains fluid.
In the automotive sector, there was a significant downturn in tax revenue amid market anticipation of potential tariff and commodity tax cuts, as trade negotiations between Taiwan and the US pan out, Liu said.
New vehicle sales last month fell 22.3 percent from the same month last year to 35,483 units, with sales of imported vehicles also declining 25.6 percent year-on-year to 15,914 units, government data showed.
As a result, vehicle commodity tax revenue plunged 45.6 percent year-on-year to NT$4.6 billion last month, marking the steepest drop in more than two-and-a-half years.
Taxes collected from import levies on passenger vehicles last month fell 61.5 percent annually to NT$1.5 billion, Liu said.
Overall, Taiwan’s tax revenue last month surged threefold to NT$876.8 billion from a year earlier, driven mainly by deferred tax filings, the ministry said.
Individuals and companies typically file income taxes in May, but this year the government granted a 30-day extension to ease the impact of external shocks related to US tariffs.
For the year to date, cumulative tax revenue totaled NT$2.3 trillion, a 2.1 percent decline compared with the same period last year, the ministry said.
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