News

Published: Monday, 17 March 2014

A group of Taiwanese legislators from the southern city of Kaohsiung say a two year old luxury tax is hurting new boat market, despite heavy investment in coastal infrastructure.

The group said the luxury tax on yacht owners has dampened the marine industry’s growth, and that exempting yachts from the luxury tax could create hundreds of new jobs in the boatbuilding sector.

 Taiwanese Legislators Rally Against Luxury Tax 3

Huang Chao-shun, who represents the city, called on the government to remove the luxury tax. A member of the opposition party, Kuan Bi-ling, added that the government had not kept its promise to the people of Kaohsiung. Kuan said that just as the boating business began to take off, the luxury tax killed growth.

Legislator Lai Shyh-bao, however, said there should not be any changes to the tax law, saying that the yacht sector should not be subject to favouritism. The current tax, which has been in place for more than two years, has collected only NT$7.3m (US$243,000), according to Finance Minister Chang Sheng-ford.