Executive Yuan approves extension of 0.15% day-trading tax rate

Taipei, Sept. 12 (CNA) Taiwan's Executive Yuan approved on Thursday an extension of the reduced 0.15 percent day-trading tax rate until 2027 in an effort to "sustain trading momentum."

The measure, which reduced the tax from 0.3 percent to 0.15 percent, was set to expire on Dec. 31 this year.

The proposed extension of the reduced day-trading tax rate was announced at a press conference held after a Cabinet meeting on Thursday.

"It is necessary to extend [the measure] by three years in order to maintain trading momentum and promote the stable development of the securities market," said Executive Yuan Spokesperson Julia Hsieh (謝子涵) on behalf of Premier Cho Jung-tai (卓榮泰).

Taxation Administration Director Sung Hsiu-ling (宋秀玲) told reporters that the tax cut was first introduced on April 28, 2017, to enhance market liquidity and trading volume, following a decline in the average daily trading volume of Taiwan's stock market from over NT$90 billion to over NT$70 billion in 2016.

With Thursday's announced extension, the average daily trading value on Taiwan's stock market is expected to remain between NT$400 billion and NT$450 billion, according to Ministry of Finance Deputy Director Lee Ching-hua (李慶華).

The draft measure also revokes a regulation that required filing of day-trading tax documents, thereby reverting to rules contained in the Administrative Procedure Act.

Now that the draft measure has been approved by the Executive Yuan, it will be sent to the Legislative Yuan for review.