Taipei, March 10, 2011 (CENS)--Lee Suh-der, finance minister, reiterated yesterday (March 9) the government's determination to expel speculators out of the realty market and reduce housing prices to normal level by putting forth the “four nos” principle for the draft “special tax statute for merchandises and services,” which is expected to be approved by the Executive Yuan (the Cabinet) meeting today (March 10) before being forwarded to the Legislative Yuan for ratification.
The first “no” is no extension of the length of ownership for realities whose transactions will be subject to the special luxury tax to three years, from the proposed two, but the length will also not be shortened to one year. The second “no” is no deadline for the implementation of the special tax. The third is no discount from the proposed rate range of 10-15% for the tax. The fourth is no discrimination, as the tax will be applicable to entire Taiwan universally.
The “luxury tax” said Lee, is scheduled for implementation from July 1 and will be retroactive to realties purchased beforehand. Sales of original houses with less than two years of ownership by people after purchase of new houses will be exempt from the luxury house, however.