Taiwan builders appeal for end of luxury tax
Published: Wednesday, 14 August 2013
Yacht builders in Taiwan have joined forces to try and urge the president, Ma Ying-jeou, to put an end to the listing of yachts as luxury goods, according to the Taiwan Times. The group is being led by the President of the Taiwan Yacht Industry Association (TYIA), John Lu, who is also the CEO of Horizon Yacht.
In a written statement Lu commented: “Unlike property or luxury products which can be used to make speculative profit, yachts should be thought of more as a consumer product. Additionally, this industry creates jobs and is an integral part of Taiwan’s development and the growth of the recreational marine industry.”
The delegation met with leaders of the Chinese Nationalist Party (KMT), Democratic Progressive Party (DPP) and Legislative Speaker of the Legislative Yuan, Wang Jin-pyng.
According to Lu, the government is on one hand trying to back the recreational marine industry but then countering that effort by imposing a 10 percent tax on boats worth over US$100,000 and to date has collected only about $150,000.
He told the legislators that the tax has not only hurt the local boat building industry, which is the world’s sixth largest with annual revenues of some $250 million, but has also taken a hit on the employment figures. As he pointed out, each new order for a yacht could create up to 100 new jobs.
Hsu Tzu-mei , Taiwan's Taxation Agency Deputy Director-General told the paper that the Ministry of Finance was reviewing this tax, but he tried to point out that the tax does not hurt local prospects since most Taiwan-made yachts are sold to foreign customers.