Finance Minister Resigns Over Stock Transaction Gains Tax

Taipei, May 30, 2012 (CENS)--In objection to the “stock transaction gains tax program” formulated by the ruling KMT caucus at the legislature, Christina Liu, minister of finance, resigned yesterday (May 29), citing difference in policy idea.

Premier Sean Chen has yet to approve Liu’s resignation but Liu appears to be insistent on her resignation. However, Liu reported that she will propose further revision on the “stock transaction gains tax program,” put forth by the Executive Yuan (the Cabinet), before leaving office.

If her resignation is approved, Liu will be the finance minister with the shortest term, lasting only 114 days.

Liu’s abrupt resignation resulted from her doubt about the compliance of the KMT caucus’s program with the principle of taxation according to capacity, since the program calls for levying 0.02-0.06% of stock transaction gains tax after Taiex index exceeds 8,500 points. The Executive Yuan may motion to revise its original program, before the Financial Committee of the Legislative Yuan starts to conduct initial review of the case.

The Taiex index surged 206 points, closing at 7,342 yesterday, with trading volume being expanded to NT$9.3 billion, the largest index hike since Dec. 21, last year and the largest trading volume since May 2.

Christina Liu said that she will try to integrate the Executive Yuan version and KMT caucus version of stock transaction gains tax, in the hope of making more progress in the direction of levying tax according to capacity.