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Taiwan starts tax on richest 1.5 per cent of people

Taiwan's parliament has approved a so-called "rich man's tax" on nearly 10,000 of the island's wealthiest people in a bid to narrow the widening income gap.

Starting next year, those with annual net income of more than NT$10 million (S$415,000), or the richest 1.5 per cent of individuals or families, will be subject to a 45 per cent income tax rate, up from the current 40 per cent, said the finance ministry.

The revised tax law also includes business tax hikes on banks and insurers as well as more tax deductions for low-income families, salarymen and the disabled, the ministry said.

It is expected to generate an extra NT$65 billion a year in revenue for the government. - AFP.