Taipei, Oct. 13 (CAN) With the local equity market bouncing back from a low in March, stock transaction tax revenue collected by the government from January-September hit a new high, the Ministry of Finance (MOF) said Tuesday.
Data compiled by the ministry shows stock transaction tax revenue generated during the nine month period hit a record of NT$107 billion (US$3.69 billion), up 65.6 percent from a year earlier.
The local equity market was initially hit hard by the COVID-19 pandemic with the benchmark weighted index on the Taiwan Stock Exchange falling to a low of 8,681.34 points.
However, by the end of September, the index had staged a rebound of 44.17 percent to close at 12,515.61. The booming market encouraged more and more investors to trade and boosted transactions, market analysts said.
In September alone, stock transaction revenue was NT$13.9 billion, up 94.1 percent from a year earlier, the data indicated.
The MOF said an increase in land tractions in industrial parks around Taiwan served as a driver to the growth of land value increment tax revenue. That particular tax revenue totaled NT$79.5 billion during the nine month period, up 8.3 percent from a year earlier, the MOF added.
The MOF said Taoyuan, New Taipei and Hsinchu County saw the highest growth in land value increment tax revenue in the nine months.
During the same period the government collected NT$377.2 billion in business tax revenue, down NT$95.9 billion or 20.3 percent from a year earlier after introducing stimulus measures to help the business sector deal with the impact of the COVID-19 pandemic, the ministry said.
In addition, a fall in tax revenue generated from the retained earnings of corporations also contributed to the decline in business tax revenue, the MOF added.
Overall tax revenue posted by the government from January to September was NT$1.84 trillion, down 1.8 percent from a year earlier, according to the MOF.