Authorities in Taiwan are poised by pass what has been dubbed a “luxury” tax which was given tentative legislative approval last week.
The move will tax non-owner-occupied homes by 10 to 15 per cent if sold within two years of a purchase, a measure aimed at fighting the speculation that has excluded some middle- and lower-income people from the market. Rising house prices were the driving force behind the legislation.
Sales of property cars, yachts, helicopters, and airplanes that cost more than 3 million New Taiwanese dollars (about US$103,000), as well as ivory, coral, furs, and furniture worth more than 500,000 New Taiwanese dollars (about $17,200) will also be taxed 10 per cent.
The government was reported saying it had studied models in Singapore, South Korea, and the United States before proposing the tax, which could take effect in June if given final parliamentary approval later this month as expected.