Taipei, Sept. 9, 2008 (CENS)--The Tax Reform Commission under the Taiwan executive branch recently reviewed taxation on capital gains amid the sharp decline of domestic stock market.

H.K. Chien, spokesperson of the Fair Tax Reform Alliance, suggested the Tax Reform Commission that capital gains from stock transaction should be subject to a 20% minimum income tax, and the tax-free threshold should be cut to NT$3 million (US$94,040 at US$1:NT$31.9) from NT$6 million (US$188,080).

Chien believes his suggestion would help demonstrate the implementation of a fair taxation system.

The Tax Reform Commission is viewing Chien`s suggestion as reference, but the imposition of capital gains will be further discussed. Vice Premier Chiu Cheng-hsiung instructed the commission to collect suggestions from commissioners and passed them to scholars to make further discussions.

Finance minister S.T. Lee said the imposition of capital gains tax can be roughly divided into three types, including income tax, stamp tax and transaction tax. He suggested the Tax Reform Commission to adopt methods of other nations, then select the most appropriate ways according to local conditions.

(by Philip Liu)