Both the Ministry of Economic Affairs and the Chinese Nationalist Party (KMT) have “missed the point” with their proposals to help businesses and people affected by the COVID-19 pandemic, the New Power Party (NPP) said yesterday.
The solution is to postpone the collection of individual income and enterprise income taxes, and increase tax credit and deductibles, it said.
Minister of Economic Affairs Shen Jong-chin (沈榮津) on Monday said that the ministry would soon introduce coupons allowing people to make purchases of up to NT$1,000, adding that they would receive a 25 percent discount for each purchase.
Shen said the measure would boost domestic demand by at least 10 times by encouraging people to shop.
The KMT, on the other hand, said that giving people cash is more practical, but that it should exclude the rich and focus on people experiencing financial difficulties.
NPP caucus whip Chiu Hsien-chih (邱顯智) said that neither coupons nor cash would boost the economy after the pandemic eases.
“The KMT caucus and the economics ministry have missed the point with their proposed measures. We believe what should be done now is to delay the levying of individual and enterprise income taxes, and raising tax credits and deductibles,” Chiu said.
Both workers and businesses have suffered tremendously because of the pandemic and whether they can survive the second quarter is a big question, he said, adding that their financial burden would only increase when they have to pay taxes next month.
Postponing the collection of income taxes is the least the government can do to ease their burden, Chiu said.
Relief measures should look after both individuals and enterprises so that they would have no trouble getting through the second quarter, he said, adding that the Executive Yuan should keep this in mind when it drafts its special budget plan.
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