Opposition ambushes voting on KMT proposal with filibuster

TAIPEI: The Legislative Yuan passed the government's 2010 budget bill yesterday after cutting its projected expenditure by NT$20 billion, or 1.15 percent, to NT$1.71 trillion ($53.92 billion).

The expenditure cut was slightly higher than the 1.11 percent cut of last year.

On the revenue side, the legislature agreed that the revenue target should be set at NT$1.55 trillion for 2010, down from the NT$1.65 trillion for 2009.

The budget gap of around NT$162 billion and a projected NT$66 billion government debt service will bring the government a refinancing need of NT$228 billion, which will be achieved by issuing government debts.

Two proposals from the ruling Kuomintang (KMT) were passed yesterday afternoon while one proposed by the opposition Democratic Progressive Party (DPP) was rejected.

Earlier, lawmakers passed an amendment commonly known as the "anti-luxury clause," which targets large tax debtors who live lives of luxury despite their declared inability to pay taxes and debts.

The amendment to the Administrative Enforcement Act was proposed after former Pacific Electric Wire and Cable Co Chairman Jack Sun, who owed NT$300 million in unpaid taxes, was seen shopping for luxury items with his wife last year. The couple was also found to be living in a luxury apartment.

According to the amendment, the Administrative Enforcement Agency under the "Ministry of Justice" (MOJ) can issue various bans on tax-owing and fine-owing individuals who have insufficient assets to repay their liabilities, but still maintain an extravagant lifestyle.

The bans include forbidding them from purchasing, renting or using products higher than a certain threshold value.

The offenders can also be prohibited from riding certain means of public transportation, making certain types of investments, patronizing certain expensive establishments, and offering as gifts or lending others money above a certain threshold value.

In cases in which individuals are found deliberately evading their debt obligations, they can be arrested and taken into custody, according to the amendment.

In the morning session, however, DPP lawmakers reneged on an agreement made the previous day to finish three bills before the session adjourned yesterday and forced the legislature into a halt by occupying the podium as they did numerous times before.

The opposition reportedly did so to protest the ruling Kuomintang's (KMT) initiative to revise the Local Government Act in order to create paid jobs to chiefs and councilors of townships in designated special municipalities.

According to the KMT initiative, the township chiefs would be appointed as directors of districts under the special municipalities, while the township councilors as advisers to directors.

China Daily/CNA

(HK Edition 01/13/2010 page2)