TAIPEI: "Minister of Finance" Lee Sush-der expressed support yesterday for the notion of imposing a tax on luxury commodities.

Speaking at a bill-screening session at the Legislative Yuan, Lee said the imposition of such a tax would be a move in the "right direction," but added that doing so might involve a law amendment.

Lee said he did not think the luxury tax can be imposed from 2010 because it would be a new law and would therefore take longer for Taiwan to prepare for its enactment and implementation.

However, ruling Kuomintang (KMT) legislator Lai Shyh-bao rebutted him, saying that the levying of a luxury tax would not require an amendment by the legislature.

"The luxury tax can be levied with just an administrative decree from the Executive Yuan," Lai argued.

Meanwhile, in response to a question raised by KMT legislator Lin Teh-fu, Lee also expressed support for the levying of higher taxes on luxurious and expensive houses.

He said, however, that since real estate tax is under the jurisdiction of local governments, the tax authorities should reevaluate the value of so-called luxury mansions based on the land value and the market value of the buildings, as well as construction costs, and adjust tax rates in accordance with the reevaluation.

The finance chief declined to confirm whether higher taxes will be imposed on high-end homes from next year.

"It depends on how fast the local governments work in this regard," Lee told Lin.

China Daily/CNA

(HK Edition 12/22/2009 page2)