By: Tseng Ying-yu, Huang Chiao-wen and Frances Huang
Taipei, Nov. 13 (CNA) Lawmakers of the ruling Kuomintang (KMT) proposed on Friday to abolish a capital gains tax on stock gains that has yet to take effect but has nonetheless been accused of leading major investors to move their funds from Taiwan’s stock exchange.
The proposal would essentially kill legislation imposing taxes on certain stock profits that was passed in mid-2013 but then had its implementation delayed until 2018 because of fears it would negatively affect turnover in the local equity market. What would remain would be the existing 0.3 percent transaction tax.
Legislative Speaker Wang Jin-pyng said the newly proposed bill to ax all capital gains taxes on stock gains needed to go through cross-party consultations before being put up for a vote. The new measure was proposed as the Legislative Yuan was still discussing another bill proposed by Deputy Legislative Speaker Hung Hsiu-chu in August when she was still campaigning as the KMT’s presidential candidate. Although her nomination was withdrawn by the KMT in October, the party said at the time it would continue to push for passage of the bill. Hung’s proposal was to divide the 0.3 percent stock transaction tax into two parts. [FULL STORY]