2013 fiscal year poised for record shortfall
By Ted Chen,The China PostTAIPEI, Taiwan -- The Ministry of Finance yesterday announced its preliminary tax revenue forecasts for August, stating that the government is poised to see a shortfall of NT$80 billion in income collections.
September 11, 2013, 12:11 am TWN
The ministry stated that in the first eight months of this year, the government had collected tax revenues of NT$91.2 billion, representing 96.3 percent of expected tax revenues.
Compared to the same period last year, tax revenues in August declined by NT$8.4 billion, down 8.4 percent year-on-year.
Tax collections in the first eight months of this year reached NT$1.2204 trillion, down by 1.1-percent year-on-year, or NT$13.1 billion.
Most notably, despite amendments to the capital gains tax on securities transactions, a move backed by the ruling party, the tax category saw sharp declines from the previous year. The ministry stated that in order for the capital gains tax to compensate for the overall shortfall in collections, revenues need to reach a monthly scale exceeding NT$12.5 billion — an unlikely feat requiring daily market trading volume to remain consistently above the NT$190 billion watermark.
According to the ministry, with a shortfall of NT$8.4 billion, the consolidated income tax category saw the most pronounced decline for the month of August.
In order to meet budgetary forecasts, tax revenues from January to August need to exceed last year's collections by NT$67 billion, or 3.7 percent, said the ministry, noting that it deems the current shortfall to be significant. An annual shortfall of NT$80 billion is expected if collections over the four remaining months of this year continue at previously forecasted levels.
The ministry attributed the decline in tax collections to pervading economic slump observed throughout Taiwan's business sectors, giving a foreboding indication of lagging economic growth.