TAIPEI (TVBS News) — The Ministry of Finance (MOF) estimates that Taiwan will see an excess tax revenue of NT＄450 billion this year, based on the tax revenue from January to November 2022, which amounted to NT＄3.079 trillion, exceeding the budget by NT＄355.4 billion.
Experts point out, however, that the excess revenue will unlikely help with reducing Taiwan's national debts.
Joe Chen, a professor at the National Chenchi University's Department of Public Finance remarked that "although our tax revenue has exceeded the levy, the government has some other budgets, like special budgets."
As special budgets were not taken into account beforehand, the excess tax revenue may still not be enough to cover everything, much less reduce Taiwan's national debt.
Professor Chen pointed out that although he agrees with returning the excess revenue to the public, it shouldn't be done literally.
Instead, the Taiwanese government should inspect its tax system to figure out why it miscalculated certain incomes and should be able to explain to the public how the excess came to be.
Although the excess in tax revenue seems to indicate Taiwan's overall economic situation is stable, the relatively high personal income tax rates have greatly impacted start-ups and entrepreneurs.
Chou Yi-tieh opened up her own gym in Taiwan recently, and though the overall business has been good, high income tax rates means she still pays around NT＄500,000 annually.
Ms. Chou explained that in this day and time, as more and more young people marry later in life or choose not to have children, tax mitigation becomes more difficult, making it harder for those just starting out to get by.
