TPP Unveils Priority Bills Including Income Tax Cuts and Social Spending Increases

The Taiwan People’s Party (TPP) unveiled its priority bills for the upcoming legislative session, which includes income tax cuts and increases in social spending. The party plans to amend the Income Tax Act (所得稅法) to improve livelihoods by focusing on rent, dividends, long-term care, insurance, and marriage and childbirth. Proposed changes include raising the maximum tax deduction for rent from NT$180,000 to NT$250,000 for eligible taxpayers.

The proposals introduce major shifts to the tax structure and social welfare system in Taiwan. They involve applying progressive tax rates to dividends and earnings instead of taxing them separately. Furthermore, the annual special deduction for long-term care expenses would be raised from NT$180,000 to NT$240,000.