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Tax hikes to come only after economy get stronger: MOF

Tax hikes to come only after economy get stronger: MOF

Taipei, Dec. 29 (CNA) Although Taiwan's tax revenue fell sharply this year, Finance Minister Lee Sush-der said Tuesday that taxes cannot be raised at present and will only be increased during a strong economy under the proper conditions.
Lee explained that the Executive Yuan's Tax Reform Committee has been unable to launch tax hikes during the past 18 months because of the economic downturn, which caused the sharp decline in tax revenue.
Hit hard by the global economic slump, Taiwan should be seen as a patient that needs to be cared for to regain its strength.
"What a patient needs most is to take medicine or get a shot. How can there be talk of raising taxes at this point in time? " Lee said in answering reporters' questions.
He noted, however, that the government's reluctance to raise taxes now does not mean it will not do so in the future.
"As long as the economy is good and the conditions are right, the finance ministry will naturally follow the trend and raise taxes, " he said.
Lee also said the government will take a long-term view of tax hikes. Although the number of tax categories has fallen since 2001, total tax revenue has still risen by NT$500-600 billion, he said.
Taiwan's net tax revenue in the first 11 months of this year totaled NT$1.43 trillion, a decline of 14.6 percent, the largest in the country's history.
Revenue from corporate and personal income taxes, which account for almost 50 percent of the country's total tax revenue, was down 24 percent during the 11 month-period.
(By Yi-fong Lin and Fanny Liu)




Updated : 2021-03-08 14:42 GMT+08:00