Kuomintang presidential candidate Hung Hsiu-chu has proposed a new version of the capital gains tax on stock gains. Her version divides the current 0.3 percent stock transaction tax into two parts. Investors would be required to pay a 0.25 percent stock transaction tax but they can choose to pay an additional 0.05 percentage point stock transaction tax or pay a 15 percent tax on their capital gains.
Analysts are saying that with Hung’s new proposal, the current version of the capital gains tax on stock gains won’t last much longer. On Wednesday, KMT Chairman Eric Chu explained why he believes the public will give their support to Hung’s proposal.
"[Hung’s version of the capital gains tax on stock gains] has 0.25 percent as the transaction tax and the other 0.05 percent is income tax. This income tax is divided into two parts," said Chu. "One is deducted while one is done through declaration. So the spirit behind her income tax is to simplify tax administration. It’s a more progressive version. I think the public will support it."