Budget does not introduce a new consumption tax

Asked whether the Government will be launched in the new Budget, excise duty, Kongling Long responded: "No, because the national economy is still below par, all things have prices."

He explained that wish to implement the consumption tax, the Government has at least 18 months time to prepare and enable all walks of life to adapt.

"For example, government agencies, especially the customs bureau's computer system needs to be upgraded, and all enterprises also need to replace the accounting computer systems, especially in taxation and tax-related mechanisms."

However, he believes that in the new Budget, the Government may announce when the introduction of consumption tax.

Expansion of service tax to increase revenue

According to "The Edge" today quoted an informed source disclosed that the Government can not be declared in the October launch of the 2010 Budget, the consumption tax, but it may expand the service tax of 5% of the tax base. If this is true, whether they are a prelude to the implementation of consumption tax?

In this regard, Tsai Chao-source that, if expansion of 5% service tax, the scope of taxation, it is only to enhance government revenue.

"In simple terms, consumption tax, service tax and sales tax is a combination. Therefore, the consumption tax and service tax, internal mechanisms are different. In the absence of a consumption tax case, the expansion of service tax, the scope of taxation is to raise tax revenue to reduce the deficit, one of the way. "

He added that the government expand the tax base of the occasion, they have to ensure that civilians were not affected, that is, to be taxed more skewed towards the high income groups.