Legislature passes changes to inheritance and gift tax

The legislature has passed changes to the nation's inheritance and gift tax. Both were originally a flat 10% tax but the changes passed on Wednesday make them now three-tier systems, in which the wealthy stand to pay higher taxes.

Lawmakers from the progressive minority New Power Party were critical of the changes, saying they do not go far enough to redistribute wealth.

However, the majority Democratic Progressive Party said the goal of the changes was not to address economic disparity, but rather to generate money for the nation's long-term care system.

President Tsai's Long-term Care 2.0 plan has been a priority for her administration, hoping to meet the needs of a rapidly aging society.

The tax increases are expected to generate an annual NT$6.3 billion (US$200 million) in revenue for long-term care. Officials have said that the tax increase represents a compromise meant to raise needed revenues while affecting the smallest number of people possible.

Source: Radio Taiwan International