President Ma Ying-jeou held a press conference on the afternoon of April 5 to explain to the public the government's full support for and determination to pass and implement a proposed tax on selected goods and services. He said that the legislation will ensure a fair housing market and equitable distribution of wealth. The president was accompanied by Premier Wu Den-yih, Vice Premier Sean C. Chen, Minister of the Interior Jiang Yi-Huah, and Minister of Finance Lee Sush-Der.
The president stated that the Executive Yuan's Research, Development and Evaluation Commission recently carried out a public opinion poll to assess public support for the proposed tax. The poll indicated that 67% of the public supports the tax, which the president said shows that having a fair housing market is important to the public, especially to younger people.
President Ma remarked that Taiwan's economy has gradually recovered over the past two years. However, housing prices have soared amid short-term speculation, creating a nightmare for many young people who are unable to afford a home. The large home mortgages are impacting the lives of many people, he said, adding that the cost of housing has become an important consideration in whether young people decide to marry and have children. At the same time, the high prices of homes enable speculators to benefit, while buying a home becomes a distant dream for ordinary buyers. This does not conform to equity and justice, and should not be tolerated in a reasonable society. As a result, remarked the president, the government has decided to implement the "selective sales tax," which people have come to refer to as the "luxury tax," with the hope of curbing this trend.
President Ma explained three main objectives in the implementation of the tax. First, he stated that the tax aims to impact speculators, not to depress the property market. He explained that the tax should help home prices to return to reasonable levels. This policy will help to prevent homes from becoming unaffordable, especially for younger people. Secondly, the president said that a continued rise in housing prices unabated by the introduction of taxes or other measures could easily cause a property bubble, which would have an adverse impact on Taiwan's economy. Thirdly, the government will not only turn to the luxury tax to inhibit short-term speculation, but will also thoroughly investigate housing bought under names of third parties, and will seek to boost the supply of affordable housing and public housing to young people who are forming families.
The president stressed that the government fully supports the implementation of the luxury tax and that on April 6 when the Legislative Yuan begins its screening of the bill he hopes that all members of the parliament, regardless of their political affiliation, will act with the best interests of the public in mind and pass the bill. This will enable Taiwan to ensure a fair housing market and equitable distribution of wealth.