A Study on the General Regulation of Local Government Taxation in Taiwan
Date Issued
2007
Date
2007
Author(s)
Yen, Shu-Hua
DOI
zh-TW
Abstract
The development of the local government industry depends on whether its financial situation is sufficient and sound or not. An old quotation says, “Finance is the mother of general affairs.” Sufficient financial revenue makes the local government run because all the local governors need financial resources to adapt and implement their policy recommendations during election campaigns.
Tax revenue which is the main financial resources of local government is devoted to government expenditure. The government should strike a balance between the demands for expenditure and the requirements of taxes. For a long time the local government has lacked an independent fiscal authority for taxation; therefore, the amount of tax revenue isn’t on the increase with the growth of expenditure, but on the decrease due to the recession and the exemption of tax. The gap between revenue and expenditure becomes greater and greater and consequently the shortage of fiscal resources goes from bad to worse. In order to solve this problem, the general regulations of local government taxation passed to have the local government exercise their authority to collect local tax.
The aim of the general regulations of local government is to expand the fiscal resources of the local government and to improve the fiscal autonomy of the local government so that the local government industry can develop well. It has been four years since the general regulations of local government passed. However, the amount of fiscal resources doesn’t increase as expected. It’s likely that the local government didn’t achieve the aim mentioned above. Are there any difficulties in putting the general regulations of local government into force?
First, this paper will discuss why the local governments in Taiwan become so financially embarrassed at the moment. By evaluating the fiscal autonomy between national and local governments in other countries and referring to the framework and the legislation of local taxation in USA, Germany and Japan, this paper will offer some suggestions on the local tax system in Taiwan.
This paper comes to the conclusion that:
1. The fiscal policy nowadays in Taiwan remains centralized.
2. There are legal and practical problems to be solve even after putting the general regulations of local government into force.
3. The general regulations of local government doesn’t go far in fiscal autonomy of the local government.
4. The local government will encounter many difficulties while exercising their authority to collect local tax
This paper will offer some suggestions mentioned below,
1. The Government should put in serious efforts to maintian a sound tax system and improve the circumstance for the local government to add tax.
2. There should be examinations to be done in the general regulations of local government.
3. The Government should vest the local governments with authority to add tax items.
4. The local governments should make every effort to collect tax, save expenditure and keep fiscal discipline.
Subjects
地方財政
地方財政自主
地方稅法通則
稅課收入
政府支出
local fiscal autonomy
local fiscal
the General Regulation of Local Government Taxation
tax revenue
government expenditure
Type
thesis