The finance ministry says it will present a property tax reform proposal to the Cabinet by the end of the month.
Finance Minister Chang Sheng-ford said on Tuesday that more discussion is needed before the reform proposal can be finalized.
The property tax reform proposal aims to discourage speculation in the housing market. But details about tax rates, exemptions, and the implementation date still need to be worked out.
Many critics said the ministry’s last proposal was a watered-down version that panders to vested interests. In the last proposal, property sellers are subject to a flat tax rate of 17% if they sell their property after having owned it for more than two years. In cases where they had held the property for less than two years, the tax rate on the profit will be 30%, instead of a progressive tax of up to 45%. The proposal also exempts properties worth up to NT$40 million (US$1.26 million) from the new tax. This means the new tax does not apply to the majority of properties in Taiwan.