Tax revenue contracted last month as a sharp drop in corporate income, business and inheritance tax collections offset steady gains from individual taxpayers, the Ministry of Finance said in its monthly report yesterday.
Overall revenue fell 10 percent from a year earlier to NT$153.7 billion (US$5.07 billion), the report said.
Corporate income tax revenue tumbled 39.5 percent annually to NT$6.6 billion, weighed down by large-scale refunds, while business and inheritance tax revenue also declined, it said.
Photo: CNA
Individual income tax revenue provided a cushion, climbing 5.9 percent from the same month last year to NT$82.9 billion, supported by higher withholding on dividends and wages, it said.
The divergent trends highlight an uneven fiscal landscape, with household-related income propping up the revenue base, while businesses contribute less amid refund pressures and a softening tax environment, the ministry said.
There was a bright spot in securities transaction tax revenue, which increased to NT$27.7 billion — the highest on record for August — ending a five-month losing streak, the report said.
“The stock market shook off negative sentiment linked to US tariffs and hit record highs on the back of artificial intelligence-related stocks, boosting turnover,” said Liu Shun-rong (劉訓蓉), a senior official at the ministry.
The benchmark TAIEX rose 2.9 percent early in the month, topping 24,000 points after expectations built that the US Federal Reserve would cut rates and US President Donald Trump said that Taiwan Semiconductor Manufacturing Co (台積電) would be exempt from US chip tariffs, Liu said.
Average daily turnover on the local main bourse swelled to NT$553.3 billion, higher than the figure a year earlier and a month earlier, the ministry said.
From January through last month, cumulative securities transaction tax revenue reached NT$167.2 billion, although it was NT$33.1 billion lower than the same period last year, it said.
The outlook for this month is promising, with the TAIEX surging above 25,000 points and daily turnover approaching NT$600 billion on deepening rate-cut bets, Liu said.
“If the trend sustains, securities transaction tax revenue will extend the positive streak,” she said, but added that unfavorable news could still trigger market reversals.
For the first eight months of the year, total tax revenue was NT$703.3 billion, up 5.4 percent from the same period last year and 9.5 percent above the ministry’s target, the report said.
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