The Cabinet yesterday approved amendments to the Law Governing the Allocation of Government Revenues and Expenditures (財政收支劃分法), which would increase tax-redistribution income for local governments.
The draft now proceeds to the legislature for review.
With an amended law in place, the Cabinet estimates that the tax redistribution fund would increase from NT$194 billion to NT$280 billion (US$5.9 billion to US$8.5 billion). Local governments would receive around NT$30 billion more in funds from tax redistribution and other subsidies.
The Cabinet also hopes to incorporate ordinary subsidy funds in legislation at a later date. In the meantime, the fund is worth around NT$130 billion a year. The government hopes to lower this figure to NT$80 billion a year.
Premier Chang Chun-hsiung (
Under the proposed amendments, the system of fund allocation via fixed percentages would be replaced by a new formula.
About 94 percent of the funding is presently awarded by the central government directly to governments. Twelve percent is given to township administrations and 39 percent to county and city governments. The special municipalities of Taipei City and Kaohsiung City together receive 43 percent.
The remaining 6 percent is retained by the central government as an emergency reserve fund.
Under the draft amendment, the fund is split into two portions of 90 percent and 10 percent. A total of 67.5 percent of the total fund would be awarded to the various governments out of the former portion, while the remaining 22.5 percent would be awarded according to financial need and taking into consideration local government efforts to raise funds.
From the latter portion, 6 percent of the total fund would be used as a subsidy for special municipalities, counties and cities that receive less money than before.
The remaining 4 percent of the total fund in the latter portion would serve as a reserve fund.
In addition, special municipalities would receive 10 percent more in inheritance and gift taxes, while villages, townships and cities would receive 20 percent less.
Counties and cities would keep the 20 percent incremental land-value tax levied on residents, securing the local governments around NT$70 billion more each year.
The Cabinet yesterday also drafted a law governing zoning for administrative districts.
Under the draft, the central government would not have to acquire local council approval if it decided to merge local governments. But council approval would be required if the merger were proposed by the local governments themselves.
Additional reporting by Jimmy Chuang
PROCEDURE: Although there is already a cross-strait agreement in place for the extradition of criminals, ample notice is meant to be given to the other side first Ten Taiwanese who were involved in fraud-related crimes in China were extradited back to Taiwan via Kinmen County on Wednesday, four of whom are convicted fraudsters in Taiwan. The 10 people arrived via a ferry operating between Xiamen and Kinmen, also known as the “small three links.” The Kinmen County Prosecutors’ Office yesterday said that four of the 10 extradited people were convicted in Taiwan for committing fraud and contravening the Money Laundering Control Act (洗錢防制法), and were on the wanted list. They were immediately arrested upon arrival and sent to Kinmen Prison to serve their sentences following brief questioning, the office said.
Taipei and Kaohsiung have extended an open invitation to Japanese pop star Ayumi Hamasaki after Chinese authorities abruptly canceled her scheduled concert in Shanghai. Hamasaki, 47, had been slated to perform on Saturday before organizers pulled the show at the last minute, citing “force majeure,” a move widely viewed as retaliation for Japanese Prime Minister Sanae Takaichi’s recent remark that a Chinese attack on Taiwan could draw a military response from Tokyo. Taipei Mayor Chiang Wan-an (蔣萬安) yesterday said the city “very much welcomes” Hamasaki’s return and would continue to “surprise” her. Hamasaki, who has a large global fan base, including
‘REGRETTABLE’: Travelers reported that Seoul’s online arrival card system lists Taiwan as ‘China (Taiwan),’ the Ministry of Foreign Affairs said The Ministry of Foreign Affairs yesterday urged South Korea to correct the way Taiwan is listed in its newly launched e-Arrival card system, saying the current designation downgrades the nation’s status. South Korea rolled out the online system on Feb. 24 to gradually replace paper arrival cards, which it plans to phase out by next year. Travelers must complete the electronic form up to 72 hours before entering the country. The ministry said it has received multiple complaints from Taiwanese travelers saying that the system lists Taiwan as “China (Taiwan)” in dropdown menus for both “place of departure” and “next
Starting next month, people who signed up for the TPass 2.0 program can receive a 15 percent rebate for trips on mid to long-distance freeway buses or on buses headed to the east coast twice every month, the Highway Bureau said. Bureau Director-General Lin Fu-shan (林福山) said the government started TPass 2.0 to offer rebates to frequent riders of public transportation, or people who use city buses, highway buses, trains or MRTs at least 11 times per month. As of Nov. 12, 265,000 people have registered for TPass 2.0, and about 16.56 million trips between February and September qualified for
RSS