The New Power Party (NPP) yesterday urged the Executive Yuan to implement an integrated housing and land taxation system, as well as a vacant home tax to increase the nation’s housing supply.
An amendment to the Income Tax Act (所得稅法), which was approved by the Cabinet on Thursday last week, redefines “short-term property ownership” by extending the duration from the previous limit to five years from two years.
Under the new tax system, private individuals and institutions would pay a 45 percent tax on the profit they gain from selling homes or properties within two years of purchase, while those who sell within two to five years of purchase would pay a 35 percent tax.
Photo: CNA
NPP Chairwoman Chen Jiau-hua (陳椒華) said that while the party recognizes the government’s efforts in tackling an urgent and thorny issue, simply redefining short-term property ownership would not stop those with “deep pockets” from hoarding houses.
The government should define a tax bracket for gains from housing sales, Chen said, adding that people earning high profits from housing transactions should pay higher taxes.
If homeowners are willing to decrease selling prices, they would pay less property transaction tax, she said.
“This would not only guarantee a reasonable return on investment for homeowners, but it would also effectively curb the excessive rise in housing prices,” Chen said.
The deductible in transactions involving owner-occupied homes in the integrated housing and land taxation system was stipulated based on the housing market in 2015, Chen said, adding that the Ministry of Finance should survey the current housing market and readjust the deductible.
NPP caucus director Claire Wang (王婉諭) said the government should change the tax base and implement a tax bracket in the new tax system, otherwise real housing justice would never be achieved.
The Ministry of Finance should consult local government officials and review the actual housing prices registered by homeowners before readjusting the tax base, Wang said, adding that this would ensure reasonable housing prices in every locality.
The NPP also proposed a tax bracket that would protect homeowners and lower the percentage of people owning multiple homes, Wang said, adding that more vacant homes would in turn be released to the housing market.
The Cabinet delayed levying a vacant home tax on grounds that 780,000 tenants at rental units would be asked to pay the tax instead, Chiu said.
However, the party’s research showed that the Cabinet was citing the number of homeowners owning more than four properties, he said.
“The Cabinet was presuming that these homeowners have rented out each and every house they own to others, which is illogical,” Chiu said.
It has been proven that levying a vacant home tax would cause homeowners to release additional houses they own to the market, which would help stabilize the housing market and inhibit the rise of home prices and rents, he said.
Some people have attributed a hike in home rents in South Korea to a vacant home tax there, which was implemented in 2017, but data show that the annual rent increase in South Korea has since been much lower than that in Taiwan, Chiu said.
The Cabinet should not be frightened by the situation in South Korea and use it as an excuse not to charge vacant home tax, he said.
A strong continental cold air mass is to bring pollutants to Taiwan from tomorrow, the Ministry of Environment said today, as it issued an “orange” air quality alert for most of the country. All of Taiwan except for Hualien and Taitung counties is to be under an “orange” air quality alert tomorrow, indicating air quality that is unhealthy for sensitive groups. In China, areas from Shandong to Shanghai have been enveloped in haze since Saturday, the ministry said in a news release. Yesterday, hourly concentrations of PM2.5 in these areas ranged from 65 to 160 micrograms per cubic meter (mg/m³), and pollutants were
Taiwan’s armed forces have established response protocols for a wide range of sudden contingencies, including the “Wan Chun Plan” to protect the head of state, the Ministry of Defense (MND) said today. After US President Donald Trump on Saturday launched a series of airstrikes in Venezuela and kidnapped Venezuelan President Nicolas Maduro, concerns have been raised as to whether China would launch a similar “decapitation strike” on Taiwan. The armed forces regularly coordinate with relevant agencies and practice drills to ensure preparedness for a wide range of scenarios, Vice Minister of National Defense Hsu Szu-chien (徐斯儉) told reporters before a
EVA Airways on Saturday said that it had suspended a pilot and opened an investigation after he allegedly lost his temper and punched the first officer several times as their plane was taxiing before takeoff at Los Angeles International Airport. According to a report published on Thursday by The Reporter, the incident occurred after the flight’s Malaysian first officer tried to warn the Taiwanese pilot, surnamed Wen (文), that he was taxiing faster than the speed limit of 30 knots (55.6kph). After alerting the pilot several times without response, the first officer manually applied the brakes in accordance with standard operating
NOT AN OPENING: Trump’s violation of international law does not affect China’s consideration in attacking Taiwan; Beijing lacks capability, not precedent, an official said Taiwanese officials see the US’ capture of the president of Venezuela as a powerful deterrent to Beijing’s aggression and a timely reminder of the US’ ability to defeat militaries equipped with Chinese-made weapons. The strikes that toppled Venezuelan President Nicolas Maduro signaled to authoritarian leaders, including Chinese President Xi Jinping (習近平), US President Donald Trump’s willingness to use military might for international affairs core to US interests, one senior official in Taipei’s security circle said. That reassured Taiwan, the person said. Taipei has also dismissed the idea that Trump’s apparent violation of international law could embolden Beijing, said the official, who was not
RSS