TAIPEI Feb 24 Taiwan's finance ministry said on
Monday it will raise the income tax paid by banks and insurance
companies to 5 percent from 2 percent currently, in its latest
effort to tackle the island's rising debt.
Income tax paid by securities houses, futures and asset
management firms will remain the same at 2 percent, the ministry
said in a statement.
The increases are subject to approval by parliament.
Taiwan's debt has surged in the past years, rising to
T$5.4618 trillion ($182 billion) as of January, according to
local media reports. No comparison figure was available.
Banking stocks fell 1.7 percent on Monday after
local media reported the tax hike. The main share index
slipped 0.5 percent.
(Reporting by Jeanny Kao and Faith Hung; Editing by Kim