Taipei, May 7, 2008 (CENS)--Li Shu-teh, the incoming minister of finance, pledged yesterday (May 6) to form a tax reform committee shortly after swearing into office for pushing the negative tax system, a major platform of President-elect Ma Ying-jeou which will enable low-income families to receive government subsidies.

900,000 local households, or some 3.2 million people, are expected to benefit from the system, which will cost the government NT$25 billion annually.

Li noted that the system will exclude those low-income families with high assets, in order to cut wastes and actually achieve the policy goal of taking care of poor families. In addition, it will be integrated with existing social-welfare measures, such as the subsidies for senior citizens or the national annuity program which is going to be implemented.

According to Ma`s platform, a four-member family with net annual income, or income after deduction of tax exemption and tax deduction amounts, under NT$360,000 will be entitled to annual subsidy of NT$46,800, which will decrease in proportion with the increase of household income and reach zero for families with annual income reaching NT$480,000.

Some experts, though, doubt the feasibility of implementing the system from 2009, according to the initial schedule of Ma`s camp, in view of the huge financial need and the need for legal revision.
(by Philip Liu)