P. M. BRIEFING : Taiwan Acts to Cool Stock Market
Taiwan’s Parliament has approved a Finance Ministry proposal to lift the tax on individual stock transactions from its current 0.15% to 0.6%, a government spokesman said today.
The bill must win presidential approval within 10 days, after which it would take effect immediately.
The measure is aimed at dampening volatility on Taiwan’s roller-coaster stock market, which has slumped after hitting a record high of 10,773.11 Sept. 25.
The 0.6% tax was a government compromise after a Finance Ministry proposal in August for a 1% to 2% tax met with mass protests by investors just before parliamentary elections were held Dec. 2.
The tax is expected to hit small investors, who favor lightning-fast trading, as well as some of the market’s big players, who account for huge daily volume.
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