TWSE’s transaction tax reaches year-to-date monthly high
12 August 2013
By Asia Asset Management
Taiwan’s Ministry of Finance announced that revenues from the Taiwan Stock Exchange Corporation’s (TWSE’s) transaction tax hit a fresh high this year, reaching NT$7.1 billion (US$236 million) in July, up NT$2.2 billion or 45% year-on-year, according to a report from China Times.
The growth was mainly attributable to the imposition of revised securities gains tax margins earlier this year. The tax was levied on top of existing transaction fees placed on the buying and selling of shares, as well as the security transaction tax that comes with the disposal of stocks on the bourse.
Nevertheless, an official from the department of statistics at the Ministry of Finance told local media that TWSE’s total transaction tax for the first seven months of the year amounted to NT$40.3 billion, down 6.7% from NT$43.2 billion a year earlier.
The official noted that transaction tax has to stay above NT$11.2 billion per month for the remainder of the year to achieve the bureau’s whole-year target of NT$96.4 billion.
Separately, corporate income tax has suffered negative growth for two consecutive months starting June because of the decline in profitability.
Up to the end of July, the Taiwanese government collected total taxes of NT$1.13 trillion, a decrease of 1% compared to the amount during the same period last year.
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