Last week, a NT$1.05 trillion bailout budget for COVID-19 was passed. As for how to utilize it, Kuomintang lawmakers are calling for a cash distribution instead of handing out coupons. Meanwhile, Democratic Progressive Party Legislator Kuo Kuo-wen, is proposing to make amendments to the law, such that these subsidies won't be taxed.
Democratic Progressive Party Legislator Kuo Kuo-wen is calling for revisions to Articles 3 and 9 of the COVID-19 bailout act to exclude bailout subsidies from taxable income.
The Civil Code needs to be amended, especially Article 4 of the Income Tax Act, so that in the future any subsidies from the government to either individuals or companies are excluded from taxable income. Such a revision would allow everyone to see the government's goodwill.
In response, the Taxation Administration said revisions passed on the 2nd have already accomplished this.
...including the proposal (for revisions to) Article 9 as proposed by a legislator. These compensations or subsidies or incentives provided by the government received by the industries that have been detrimentally affected by the pandemic, or laborers, or workers, can all be included within the scope of tax-exempt income.
Kuomintang lawmakers, meanwhile, are calling for cash distributions instead of coupons and vouchers so that citizens' basic needs can be met.
(Workers) have already been laid off or been put on forced unpaid leave. Where are these people supposed to find the disposable money to go out and buy things? That's why cash distributions are the most timely, effective and direct option.
The KMT proposes using tax brackets for the distributions and says wealth exclusion measures should be written in. Under the party's proposal, funds would come from raising debt against the recently passed NT$1.05 trillion special COVID-19 budget and the second-phase Forward-Looking Infrastructure Development Program budget.