Tax reduction on day trading could take effect in April

The finance ministry says a proposed bill to reduce tax on day trading transactions could go into effect by late April to boost the domestic stock market.

The Legislature conducted a review of the bill on Thursday. Finance Minister Sheu Yu-jer said the bill's passage would make Taiwan the first country in the world to implement a tax reduction on day trading.

"This will be a new system. Other countries that have day trading systems have securities transaction tax, financial transaction tax, or stamp tax, but none of them are tax reductions or tax-free. We would become the world's first country to use a day trading transaction reduction tax," Sheu said.

The Financial Supervisory Commission estimates that the planned cut could boost day trading volumes from the current 10% of total turnover to 15%.

Source: Radio Taiwan International