Hung pledges new tax on sale of stocks
KMT candidate believes move could attract foreign investors
Kuomintang (KMT) presidential candidate Hung Hsiu-chu (
) yesterday pledged to reform how stock sales on the local market are taxed.
Hung, speaking at the KMT headquarters, proposed levying a 0.25-percent tax on stock transactions and a 0.05-percent tax on stock transaction gains.
She also proposed canceling a clause that exempts foreign institutional investors from capital gains tax on securities trading.
Currently there is a transaction tax of 0.3 percent on stock market trades and no active tax on gains from transactions.
In 2013, the Legislative Yuan passed a 15-percent stock gains tax on large-scale traders, which can be replaced by an extra 0.1- percent tax on any stock transactions in excess of NT$1 billion.
The tax was scheduled to come into force this past January but has been suspended until 2018 due to market resistance.
Hung’s plan, if approved, would replace both the current
and upcoming tax schemes.
Consensus Needed: Executive
Hung told reporters that her team was in talks with the Executive Yuan and the ruling party’s legislative caucus, in hopes of promoting the tax plan in the coming legislative session.
The Presidential Office yesterday declined to comment, while the Executive Yuan confirmed that the think tank of the KMT headquarters had presented the plan to Premier Mao Chi-kuo ( ).
The premier believes the plan can be discussed but that the Legislative Yuan must form its own consensus, according to a Cabinet statement.
Vulnerable to Vultures
Hung said that the value of Taiwan’s stock market has been declining both in terms of the priceearnings ratio and the price-book ratio.
Sinking value makes Taiwanese companies vulnerable to overseas “vultures” that can, at a low price, buy up years of hard work and shrink the domestic job market, she said.
Hung said her reform plan for taxation could help curb the slide in the market by eliminating factors of uncertainty, and that it would also eliminate unequal taxation on domestic and foreign investors.
For long-term recovery, Taiwan should move toward becoming a free-trade economy. To achieve short-term economic recovery, Taiwan needs to acknowledge that the downturn of its capital market is a serious risk, she said.
At the press conference, Hung was joined by Yiin Chii-ming (
), president of the KMT’s National Policy Foundation (
) and a former minister of economic affairs, and KMT lawmaker Tseng Chu-wei ( ).
Kuomintang (KMT) presidential candidate Hung Hsiu-chu ( her plan for stock gains tax reform in Taipei, yesterday.