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MOF
denies the plan about business tax increase
Finance Minister Yen Ching-chang said that the Ministry of
Finance has no plan to raise the business tax rate to implement
income tax cuts to back a campaign pledge by Vice President Lien
Chan.
The presidential candidate of the governing Kuomintang, Lien Chan said he will cut in the income tax by raising the special deduction amount for wage earners. Leaders of opposition parties and some finance ministry officials said the government will have to raise other taxes like the business tax to make up the central governments' deficit budget.
Business and industry leaders, worried by the reports of the finance ministry's plan to increase the business tax rate, said the increase in the tax rate will not only dampen the business ctivities and slow down the island's economic growth, but will also induce a rise in commodity prices.
Officials of the of the Council for Economic Planning and Development said they didn't make any proposal to increase taxes. Ministry officials said they will revise the Income Tax Law to subject all income of Taiwanese citizens to the income tax in order to broaden the tax base and prevent richer people from evading tax payment.
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Friday, January
21, 2000
Source:
Taiwan Headlines