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Taiwan Fin Min: Tax Rate Hikes Unlikely Next Year



TAIPEI -(Dow Jones)- Taiwan is unlikely to raise tax rates next year before any "concrete" economic recovery, Minister of Finance Lee Sush-der said Friday.

"A GDP growth of 3%-4% next year could not be described as concrete in light of the low base this year," Lee added.

Tax rate hikes would also need to be approved by the legislature, making it unlikely that taxes will be raised next year, he said told reporters at a press conference.

Besides taking into account GDP growth, the ministry will also consider other factors like inflation and wages before deciding whether or not to raise taxes.

The tax reform committee suggested earlier in October the introduction of energy and green-house emission taxes and taxes on capital gains on stock investments.

The finance ministry also has no immediate plans to issue government debt overseas as "the country has ample funds," he said.

-By Crystal Hsu and Charmian Kok, Dow Jones Newswires; 88622 502-2557; charmian.kok@dowjones.com


  (END) Dow Jones Newswires
  11-20-090906ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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