Tax revenue hits new high despite fall in stock transaction tax

Taiwan’s tax revenue hit a new high in the first eight months of 2022, rising more than 16 percent from a year earlier despite a fall in revenue from stock transaction taxes, the Ministry of Finance (MOF) said Monday.

Total tax revenue from January to August totaled NT$2.26 trillion (US$73.21 billion), up 16.8 percent from a year earlier, while stock transaction tax revenue tumbled NT$71.7 billion, or 36.7 percent, from a year earlier to NT$123.5 billion, MOF data showed.

MOF specialist Liang Kuan-hsuan (梁冠琁) said the higher total tax revenue in the eight months resulted mainly from an increase in corporate income taxes, personal income taxes, import duties, inheritance taxes, housing taxes, and vehicle license fees.

In the eight-month period, corporate income tax revenue rose 57.5 percent from a year earlier to NT$730.5 billion as publicly listed companies posted higher profits, Liang said.

Personal income tax revenue rose 32 percent from a year earlier to NT$518.7 billion, resulting largely from higher taxes collected on wages and cash dividends, Liang said.

Total stock transaction tax revenue fell sharply, however, as average daily turnover on Taiwan’s main stock exchange and the over-the-counter market to NT$309.9 billion in the first eight months, from more than NT$400 billion last year, Liang said.

In August alone, daily turnover averaged only NT$252.2 billion, signaling a potentially further fall in tax revenue later this year.

In the first eight months, the Taiex, the Taiwan Stock Exchange’s benchmark weighted index on the Taiwan Stock, fell 3,123.40 points or 17.14 percent in the wake of economic and political uncertainties.

The MOF has set a goal to collect NT$176.8 billion in stock transaction taxes for 2022.

Liang said the Fed is likely to raise key interest rates later this month, which could adversely affect global financial markets, and the MOF will continue to watch closely whether the goal can be achieved.

 

 

Source: Focus Taiwan News Channel