Finance Minister Chang Sheng-ford has reiterated that recent heavy losses in the local equity market are a result of weak economic fundamentals at home and abroad. He also adds that investors cannot blame taxes for the downturn.
Chang’s comments on Friday came as a response to the Financial Supervisory Commission’s survey of large equity investors. The survey showed that the securities transaction tax has turned away many major market players. Taiwan’s weighted index has fallen by more than 10% since it hit a peak in April.
Chang said that the recent downturn largely reflects a fall in exports Taiwan has suffered amid weakening global demand. He also emphasized that Taiwan is not the only country to be affected by unfavorable conditions in the global market.
When talking to the media on Friday, head of the Financial Supervisory Commission, William Tseng, said the commission’s survey is only for the Finance Ministry’s reference.
"The commission has never seen tax cuts as a way to revive the market or to relieve an emergency," Tseng said. "We fully understand that what we want is a taxation system that is fair, that can collect money, and allow the capital market to develop."
Tseng also said he communicates well with the finance minister, saying that they have different responsibilities so it is natural that they have different views.