Evaluation of Taiwan's Sales Tax System and Analysis of Related Issues--Merchandise Tax and Tobacco/Alcohol Tax--

• Main Authors: SHU-CHUAN CHEN, 陳淑娟
• Other Authors: JIU-YOUNG JIAN
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/82465254978672774855

碩士 === 中原大學 === 會計研究所 === 91 === Since the implementation of the new business tax system in 1986, the taxable items prescribed in the merchandise tax law have not been reviewed for years. Taxation of some of the taxable items has deviated from the purpose underlying the enactment. Changes in circumstances have made it necessary to review and make adjustment to the provisions of the law. On the other hand, under the impact of the massive 921 Earthquake, the US-Iraq War and the vicious epidemic called Severe Acute Respiratory Syndrome (SARS), domestic economy has stayed bearish and the government’s revenue from taxation dwindled. More and more business entities are trying to evade their tax obligations, and the trend has worsened the government’s financial shape. The government abolished the monopolized sales system for tobacco and liquor and returned both to the taxation system. Through special enactment, both tobacco and liquor were removed from the list of items subject to merchandise tax to form a new category entitled tobacco/liquor tax. Since the implementation of the new taxation system for tobacco and liquor more than a year ago, however, moonshiners have filled the market with unauthorized liquors. Deadly fake rice wine has threatened the lives of many and caused the treasury to sustain severe loss in taxation revenue. This paper reviews and analyzes systemic shortcomings of the merchandise tax and the tobacco/alcohol tax systems mentioned above, as well as issues pertinent to the taxation. Findings are concluded as follows: 1.With social and environmental changes, special consumption taxes have been redefined as social-policy-oriented measures aiming at “environmental protection”, “energy conservation” and “prohibitive taxation”. In the future, special consumption taxes may be targeted at consumer and production activities that pollute the environment, consume energy and are detrimental to public health, in order to prevent ineffective energy usage and negative external impact. 2.Tax evasion has become a common practice because there are loopholes in taxation laws, and investigating agents have not worked hard enough on tax evasion cases. To intensify investigation, we have to first comprehensively enhance the function of the internal organization and management of taxation agencies. 3.We cannot blame the death caused by fake rice wine solely on the overly high taxation. As a matter of fact, the deficient tobacco/alcohol safety system, ineffective supervision and the fact that governing agencies have not been clearly defined are all responsible. As a result, the government needs to amend the law and intensify its battle against unauthorized wines to completely wipe out the threat of deadly faked rice wine.