Alexa
  • Directory of Taiwan

Economic Daily News: The absence of taxation

Economic Daily News: The absence of taxation

On the first anniversary of his tenure on Thursday, Premier Wu Den-yih raised the possibility of imposing a capital gains tax and a luxury tax in a bid to narrow the wealth gap in Taiwan.
We need to scrutinize the government's sincerity in promoting the policy, because it is the government itself that has allowed the role of taxation to be absent from the pursuit of equal wealth distribution. Most of the time, the government has been busy leaning toward the rich.
The key issue here is whether we can change taxes on wealth, such as introducing a tax on the gains from stock transactions and taxing gains from house and land transactions based on realized values, instead of current values.
Taiwan is one of the few countries that has been lenient toward capital gains. As a result, the taxes paid by salary earners account for 56 percent of the country's annual revenue.
A more positive approach to narrow the gap between the rich and the poor is to boost employment and raise the salary levels. Changing the tax system is only the first step. (Editorial abstract -- Sept.
11, 2010) (By Y.F. Low)




Updated : 2021-05-17 03:42 GMT+08:00