World
Taiwan approves 'rich man's tax'
Publish Date: May 17, 2014
Taiwan approves 'rich man's tax'
A general view of a busy street in Taipei, Taiwan. PHOTO/AFP
  • mail
  • img
newvision

TAIPEI - Taiwan's parliament has approved a so-called "rich man's tax" on nearly 10,000 of the island's wealthiest people in a bid to narrow the widening income gap.

Starting next year, those with annual net income of over Tw$10 million ($333,000), or the richest 1.5 percent of individuals or families, will be subject to a 45 percent income tax rate, up from the current 40 percent, said the finance ministry.

The revised income tax law passed by parliament Friday also includes business tax hikes on banks and insurers as well as more tax deductions for low-income families, salarymen and the disabled, the ministry said.

It is expected to generate an extra Tw$65 billion more a year in revenue for the government, including Tw$9.9 billion from the richest people as well as around Tw$20 billion from the banking and insurance sectors.

Finance minister Chang Sheng-ford has said that the taxation reform was aimed at improving income distribution and was backed by tycoons such as Foxconn Group founder Terry Gou.

Taiwan's income gap reached a record level in 2011, as the wealthiest families earned 96 times more than the poorest, according to the latest official data.

The bottom five percent of families reported an average annual income of Tw$48,000, compared with Tw$4.63 million earned by the top five percent in 2011, based on their income tax filings.

Observers have blamed the rapidly widening gap between the rich and the poor as one of the reasons behind a recent string of anti-government protests.

AFP

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
US airstrikes kill Qaeda fighters in Syria
US-led air strikes killed 30 Al-Qaeda militants and eight civilians, including children, in northern Syria, the Syrian Observatory for Human Rights said...
Ebola cases to triple to 20,000 by November - WHO
THE number of Ebola infections will triple to 20,000 by November, soaring by the thousands every week if efforts are not significantly stepped up to stop the outbreak...
Islam has been tarnished by "forces of darkness" and Saudi Arabia should do more to protect its youth from violent extremism....
Ukraine says won
Ukraine''s military said Sunday it would not pull back its troops from the frontline until all sides abide by a ceasefire under the terms of a new peace plan....
Two Iranians held in Kenya amid terror alert
AUTHORITIES in Kenya say they have arrested two men believed to be Iranian nationals transiting through the East African nation on fake passports...
Queen urges unity after Scotland votes
Queen Elizabeth II has called for "mutual respect" among Scots following a divisive campaign in a referendum that saw Scotland reject independence from the UK....
Do you think installing CCTV cameras in public places will help in the fight against terrorism?
Yes
No
Can't Say
follow us
subscribe to our news letter