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Social Democrats-Green alliance calls for tax equality

Social Democrats-Green alliance calls for tax equality

Taipei Oct. 25 (CNA) The Social Democratic Party (SDP) and Green Party alliance called for tax equality to narrow the rich-poor gap by proposing a fair tax program Sunday. Legislative candidates and supporters of the two minor parties hit the streets in a protest against a draft amendment to the Statute for Industrial Innovation. The Cabinet in the amendment proposed tax cuts for enterprises which spend on personnel training, overseas investments and taking measures to weather economic downturn in a business cycle. The draft is scheduled to be debated in the Legislative Yuan in December. The alliance believed that the draft, instead of reviving domestic economy, will benefit only Taiwan's conglomerates . In 2014, the average effective tax rate of Taiwan's 10 most profitable conglomerates was 10 percent, while that for conglomerates with an annual profit of more than NT$10 billion (US$3.1 billion) and eligible for the lowest effective rates was just 5 percent -- even lower than the average individual income tax rate of 12 percent, said Fan Yun (??), a legislative candidate of the Social Democratic Party. Fan said that large conglomerates which can afford to hire accountants to help evade tax, enjoy tax incentives, while salary and wage earners have no means to save even a cent in taxes, which worsens the income inequality. She estimated that the government has lost more than NT$1.5 trillion due to its tax incentives given to large conglomerates. The two parties called on the government to reexamine its tax incentive policy, raise corporate tax rate, and levy the residential property tax and real estate transaction tax in order to reduce the gap between the rich and the poor. The ally also urged the administration to enact a law to stop enterprises from moving assets overseas to evade taxes. (By Sophia Yeh and Maria Tsai)


Updated : 2021-09-29 04:29 GMT+08:00