Taipei: The Executive Yuan has approved draft amendments to the law governing the allocation of tax revenues to local governments. The proposed changes aim to distribute a historic NT$1.2 trillion in tax revenues to Taiwan's 22 city and county governments.
According to Focus Taiwan, the Finance Ministry, which drafted the bill, revealed that the amendments to the Act Governing the Allocation of Government Revenues and Expenditures would lead to significant increases in allocations across three main categories: centrally-allocated tax revenues, general grants, and program grants. These increases are projected to surpass 2025 levels.
At a press briefing, Cabinet Secretary-General Xavier Chang announced that allocations to the six special municipalities-Taipei, New Taipei, Taoyuan, Taichung, Tainan, and Kaohsiung-would see a 15 percent rise. Meanwhile, the remaining 16 city and county governments would benefit from a 25 percent increase.
The Cabinet's proposal, however, faces challenges in the opposition-controlled Legislature, which recently passed its own revisions to the revenue allocation act. The main opposition Kuomintang's (KMT) legislative caucus insisted that their amendments should take precedence over the Cabinet's proposal.
The KMT caucus also claimed that Minister for Budget, Accounting and Statistics Chen Shu-tzu had threatened to request the Legislature reconsider the amendments or seek an interpretation from the Constitutional Court. Lo Chih-chiang, the caucus' secretary-general, stated that discussions on the Cabinet's proposal would only be relevant after resolving the Legislature's bill.
In addition, the Taiwan People's Party issued a statement accusing the Cabinet of using inaccurate numbers to mislead the public. The party promised to take action against what it described as the Cabinet's "unconstitutional, disorderly" conduct.