Oct 12, 2016 Uncategorized Comments Off on Hikes in bequest tax, cigarette tax to boost care program
The Ministry of Finance said Tuesday that hikes in estate and gift tax, and cigarette tax, could help funnel a total of NT$28.8 billion (US$909 million) per year into the government's long-term care program.
The ministry will report to the Legislature on how the program will be financed Wednesday.
The Legislative Yuan has invited the ministry, the Directorate General of Budget, Accounting and Statistics and the Ministry of Health and Welfare to give reports on the issue.
In a written report made available Tuesday, the ministry said it is planning to adjust the present single tax rate of 10 percent to a three-tier system of 10 percent, 15 percent and 20 percent.
The ministry stressed that the adjustment will only affect those who have huge assets, and that those who have only moderate assets will still be subject only to the 10 percent rate.
If an estate is worth over NT$100 million after exemptions and deductions, the tax rate will be 20 percent. For estates between NT$50 million and NT$100 million, the tax rate will be 15 percent, and between NT$0 and NT$50 million, the tax rate will be 10 percent.
For net gifts over NT$50 million, the tax rate will be 20 percent, for net gifts between NT$25 million and NT$50 million, the tax rate will be 15 percent, and for net gifts between NT$0 and NT$25 million, the tax rate will be 10 percent.
Exemption for estate tax will remain NT$12 million and for gift tax, NT$2.2 million.
It is estimated that after the tax rate hike for estate and gift tax goes into effect, around NT$6.3 billion will be funneled into the long-term care program annually.
The ministry also said that it plans to raise the cigarette tax by NT$20 per pack, which will increase the tax revenues by NT$15.8 billion per year.
Source: Focus Taiwan News Channel