Taiwan’s FSC concerned about new business tax

Says it would cut weak profits in an unfavorable economic environment.

Financial Supervisory Commission Chairman Chen Yuh-chang is questioning a proposal by lawmakers to raise the business tax on financial institutions to 5% from 2% to increase government revenues.

“While domestic financial institutions have improved their earnings ability in recent years, they lag behind their international peers in terms of return on assets and equity,” Chen said.

The government should instead craft comprehensive measures to strengthen its finances rather than increase the tax burden of any particular sector.

Pro-tax KMT lawmakers Chenyuhchangsaid financial institutions should stop enjoying favorable taxation now that average bad loan levels have dropped below 1% for two straight years.

They said a one percentage point increase in the business tax could generate an extra US$1 billion a year for the national treasury, which is struggling to keep different pension funds afloat.

Also Read

SG, China deepen cross-market ties in green finance and investments

HKMA and partners inject US$500m for sustainable finance investments in Asia

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit