April Tax Revenue Declines Amidst Tariff Impacts and Global Market Challenges
Table of Contents
You might want to know
- How have tariff policies and global markets affected tax revenue?
- What are the specific impacts on different types of taxes?
Main Topic
The April tax revenue paints a concerning picture for the economy, with significant declines attributed to the ongoing implications of U.S. tariff policies and a global financial downturn. Recently released figures by the Ministry of Finance indicate a collection in April of NT$1,541 billion, showcasing a significant decrease of NT$49 billion or 3.1% compared to the same month last year. This marks the second consecutive month of decreasing revenue, with the most pronounced drop observed in stock transaction taxes, down by NT$80 billion.
Cumulatively, from January to April, the total collected revenue is NT$7,080 billion, indicating a year-over-year decline by NT$85 billion or 1.2%. When dissecting these figures, the securities transaction tax has shown a stark reduction, decreasing by NT$132 billion, alongside a NT$85 billion decrease in profit-seeking enterprise income tax, and a NT$40 billion decline in land value increment tax. Notably, individual income tax collections rose by NT$187 billion during the same period.
The securities transaction tax for April, as well as the January to April period, realized an average daily traded value on listed and OTC stocks of NT$3,381 billion and NT$3,992 billion, respectively. This represents declines of 33.7% and 14.6% compared to the same periods last year. Specifically, April's net securities transaction tax revenue was NT$178 billion, down NT$80 billion or 31% from the previous year, and the total from January to April was NT$748 billion, a drop of NT$132 billion or 15%.
In addition, taxes related to the real estate market, such as land value increment tax, deed tax, and consolidated housing and land tax, have also declined. In April, the land value increment tax net revenue was NT$54 billion, a decrease of NT$21 billion or 28.3% from the same month last year. For the January to April period, the net revenue was NT$251 billion, down NT$40 billion or 13.8%. This was primarily due to a reduction in real estate transactions and fewer major tax-related cases.
The deed tax similarly saw a reduction, with April's net revenue at NT$12 billion, showing a decline of NT$4 billion or 27.1% compared to the previous year, and the cumulative total for January to April was NT$49 billion, down by NT$10 billion or 16.8%. This is attributed to a decrease in registered real estate purchase contracts.
Moreover, the consolidated housing and land tax was collected at approximately NT$43.78 billion in April, with a monthly decrease of NT$8.55 billion or 16.3%. The net revenue for the first four months stood at NT$144.95 billion, a year-over-year decrease of NT$20.43 billion or 12.4%.
Key Insights Table
| Aspect | Description |
|---|---|
| April Tax Collection | Decreased by NT$49 billion or 3.1% compared to last year. |
| Securities Transaction Tax | Largest drop with NT$80 billion decrease in April. |
| Cumulatively (January-April) | A reduction of NT$85 billion or 1.2% year-over-year. |
| Real Estate Related Taxes | Marked decreases in land value increment and deed taxes. |
Afterwards...
Looking forward, it is essential to consider the potential for new fiscal strategies that can offset the losses incurred by these global economic shifts. The impact of digital financial technologies and policy adjustments could play a significant role in stabilizing and potentially revitalizing tax revenue streams. Policymakers and financial institutions should focus on adapting to these changes to ensure a resilient fiscal environment capable of withstanding future fluctuations in global markets.