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Legislative Yuan to review industrial innovation statutes

The statutes favor large enterprises at the expense of SME: DPP

Legislative Yuan to review industrial innovation statutes

Both sides of the Legislative Yuan will directly discuss the contents of the government-proposed industrial innovation statutes after previous attempts failed, the opposition Democratic Progressive Party said yesterday as tax reform activists called for a halt to the package.
The DPP and the ruling Kuomintang are scheduled to sit down together today to find common ground on the statutes, which have been hobbled by disputes over tax concessions to businesses and the development of industrial parks.
The opposition says the statutes favor large enterprises at the expense of small and medium enterprises.
DPP caucus whip Ker Chien-ming said that dialogue could lead to an agreement about tax rates and industrial zones, but accused the government of planning little more than those two items and of failing to propose ideas for long-term development.
Until now, lawmakers had not truly discussed the contents of the package, Ker said, accusing the KMT of fomenting confrontation by mobilizing all its lawmakers for each meeting. Ker warned the majority party against trying to win a vote on the statutes before discussing it with the opposition.
His counterpart at the KMT, Lin Yi-shih, said he hoped both sides could come to an agreement during yesterday's negotiations. The industrial innovation statutes were listed as a priority item for the current legislative session.
The renewed impetus to pass the measures met with a call on lawmakers from tax reform activists yesterday to "hit the brakes" and reevaluate the package.
The government proposal lacked any trace of fairness, said Wang Jung-chang of the Fair Tax Reform Alliance. The only change to the proposal was the abolition of a favorable 15-percent tax rate for multinational corporations basing their operational headquarters in Taiwan, he said.
The statutes would lead to an unfair taxation system and would undermine tax revenue, while even causing the encroachment of industry on agricultural land, according to Wang.
Taiwan Farm Village Front activist Chan Shun-kuei said the statutes would lead to an explosion in the number of industrial parks with the government helping out private investors obtaining land, including state-owned land, for industrial use. An absence of any restrictions would lead to a wave of speculation by construction firms and real estate developers, Chan said.
The KMT's Lin said critics of the statutes were focusing too much on projected losses in tax revenue, but failed to take into account how the measures might encourage foreign companies to invest in Taiwan and cause a raise in tax income instead.


Updated : 2021-05-14 13:29 GMT+08:00