Ma Reiterates Tax Reform Pledge

by Mary Swire, for LawAndTax-News.com, Hong Kong

02 May 2008

Taiwan's President-elect, Ma Ying-jeou on Tuesday reiterated his plans for an "economic reinvention" of the territory, telling those attending an American Chamber of Commerce dinner of his plans to boost infrastructure investment and reform the tax regime.

Explaining to those attending the AmCham event that: "These are measures in our effort to bring forth an economic renaissance," Ma revealed plans to improve the territory's rail system and harbors, and to create an "air city" dealing with logistics, warehousing and transshipment, and based around the Taiwan Taoyuan International Airport.

He also, according to reports in the regional media, reiterated tax reform plans, stating that his government will seek to increase the competitiveness of the Taiwanese tax regime compared to its rivals in Asia, and may introduce an energy tax in order to lower carbon emissions.

In late April, it was revealed that the incoming KMT government in Taiwan was planning tax rate cuts for certain sectors in order to retain domestic enterprises.

The President-elect - set to become President in mid-May - revealed at the time that his administration intends to reduce tax
rates and simplify the regulatory regime for companies in the high-tech sector.

Figures released on Wednesday showed that economic growth for Q1 2008 has been estimated at 5.13%, with unemployment standing at 3.8% in the first quarter. Key among Ma's economic targets for the coming period is a growth rate of 6%.

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