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Talk of the Day -- News digest of local media -- Tax reform

Talk of the Day -- News digest of local media -- Tax reform

The Tax Reform Committee under the Executive Yuan ended its one-and-a-half-year mission Tuesday, but whether the committee has achieved its goal on tax reforms is debatable. The following is a digest of some local media reports on the issue: Commercial Times: Sun Keh-nan, a financial scholar who served in the committee, reported Tuesday that although the committee has simplified taxation procedures and improved economic efficiency, "inappropriate tax cuts" have made the tax system even more unjust.
In the short term, the tax cuts will result in lost revenues of NT$21 billion (US$650.15 million) annually, and in the medium- and longer-term, the government is bound to raise taxes.
Compared with the results of the previous two committees, it is believed this committee has been the most affected by political interference and the one that has achieved the least, analysts said.
(Dec. 30, 2009) Economic Daily News: The Ministry of Finance (MOF) will be responsible for tax reform now that the Tax Reform Committee has bowed out.
The MOF is planning to propose luxury, energy and property taxes by the end of next year. It is also scheduled to put into practice by 2012 a partial capital gains tax on stock investments to be levied on institutional investors.
Liberty Times: Vice Premier Eric Liluan Chu said Tuesday that raising taxes is not the trend but that a tax system of fairness and justice is.
The phaseout of income tax exemption for military personnel and teachers was originally planned for next year, but Vice Finance Minister Chang Sheng-ford said that because the necessary legal revision could not be completed in time, the measure will be postponed for one year, meaning that it will be put in practice in 2011. (Dec. 30, 2009) (By Lilian Wu)