Taipei--The Ministry of Finance (MOF) said Wednesday that it is studying a proposal to increase a special deduction for individual taxpayers, which would lower their income taxes with effect from next year.
The proposal is to raise the deduction for salary or wages from NT$128,000 (US$4,156.92), said Minister of Finance Sheu Yu-jer (???), but he did not give an estimate of the proposed new figure.
In legislative hearing, Sheu said the proposal will be included in his ministry's draft tax reform bill that will be submitted to the Cabinet in May.
If the bill is passed by the Legislative Yuan, some 5.39 million people will see a reduction in their income taxes in 2018, he said.
The MOF has estimated that raising the special deduction for salaries or wages by NT$1,000 will cost the government NT$270 million per year in tax revenues, according to Sheu.
He said the proposed increase will be decided based on the government's financial situation.
The ministry has been considering the increase since Feb. 8 when the Justices of the Constitutional Court issued an interpretation that said the maximum deduction allowed for the income of individuals under the Income Tax Act was unconstitutional and ordered the finance ministry to review and amend the relevant sections of the Act.
Source: Focus Taiwan News Channel