The Kuomintang Legislative Yuan Party Group held a press conference titled "Excessive tax collection! Administrative failure!"

(Photo by reporter Wang Yisong)

[Reporter Wang Qianhao/Taipei Report] DPP legislator Gao Jiayu recently pointed out that excessive tax collection is not a political achievement, but an administrative failure. After triggering a backlash within the party, he publicly apologized.

In this regard, the Legislative Yuan KMT Group held a press conference today (10) to support Gao Jiayu, saying that she is someone from the DPP who is willing to tell the truth, pointing out that excessive tax collection is administrative failure, and criticizing the government's financial department for inaccurate tax estimates.

Zeng Mingzong, the head of the Kuomintang League, said that Gao Jiayu said on January 5 that the government’s excessive tax collection was due to administrative failure.

The so-called administrative failure refers to the inaccurate and unprofessional estimates of the Tsai government.

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Zeng Mingzong pointed out that former Finance Minister Su Jianrong believed that tax overcollection is the result of economic expansion, not administrative failure, but this statement is only half correct.

Since the Tsai administration came to power, the tax over-collection has been compared with the economic growth rate. In 2019, the tax over-collection was 83 billion yuan, and the economic growth rate was 3.06%. The rate is 3.06%, but the tax over-collection is as high as 450 billion yuan, and the over-collection is 23.6%. Obviously Gao Jiayu is correct, and the over-collection of taxes is an administrative failure.

Xie Yifeng, chief deputy secretary of the Kuomintang League, said that in the past two years, the excess tax revenue has exceeded 400 billion yuan. The government claims that it is economic expansion, but for domestic demand industries such as tourism, it has been affected by the epidemic and is in depression, and even faces bankruptcy. Giving bailouts means that the fruits of the so-called economic expansion are not shared by the whole people, but are caused by uneven distribution.

KMT legislator Fei Hongtai said that Su Jianrong said yesterday that "repaying taxes to the people is a false issue, and that tax over-levying should give priority to debt repayment." At first glance, it seems reasonable, but the government has over-collected taxes by 400 billion yuan and 45 billion yuan for two consecutive years. 100 million yuan, more than 20% of the annual tax revenue, don't you think it's too much?

In other words, is the financial unit not professional enough in estimating annual tax revenue, or does the tax system in our country need to be adjusted?

Fei Hongtai pointed out that there are three types of reports that are generally looked at in business operations: profit and loss statement, balance sheet and cash flow statement.

For example, Hon Hai and TSMC have borrowed from banks. This is corporate debt, but will they use the money they earn every year to repay the debt?

probably not.

In addition, the profit and loss statement is based on the profit and loss of the previous year. Assuming that TSMC earned 450 billion yuan last year, it will definitely not be used to repay bank loans. Part of it will be used as capital reserve, and another part will be used to issue dividends with the approval of the board of directors. The concept of dividends depends on the balance sheet.

Zeng Mingzong concluded that the Kuomintang group asked the government to review the tax estimation model and budget preparation procedures so that it can be more accurate and support the government's financial needs.

The Kuomintang group supported the over-collection of tax cash to the public last year. The main reason is that the Cai government made up the special budget randomly, and the special budget was normalized. The money was not spent on knife-edge.

However, the excessive tax collection in the following years will be used to repay existing debts in order to improve the government's finances.

Today (10th) the Kuomintang group held a press conference titled "Excessive tax collection! Administrative failure!" The general summoned Zeng Mingzong to host, legislator Fei Hongtai, and chief deputy secretary-general Xie Yifeng attended.

(Photo by reporter Wang Qianhao)