Taiwan moves to levy "rich man's tax"

TAIPEI: Taiwan has moved to levy a so-called "rich man's tax" on nearly 10,000 of the island's wealthiest people in a bid to narrow the income gap, officials said Friday.

Under the proposal, those with annual net income of over Tw$10 million (US$333,000), or the richest 1.5 per cent of individuals or families, will pay a 45 per cent income tax rate, up from the current 40 per cent, said the finance ministry.

"We will raise taxes for the top (earners) and reduce taxes for low and modest income earners ... which will definitely improve the income distribution," finance minister Chang Sheng-ford told reporters.

Taiwan's tycoons, including Foxconn Group founder Terry Gou and Morris Chang, chairman of leading contract microchip maker Taiwan Semiconductor Manufacturing Co., backed the proposal as "they have donated more money than the additional taxes" they would be paying, Chang said.

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