Cabinet to revise rules to allow tax-exemption for foreign tourists

Copyright 2003 China Economic News Service
Article date: January 23, 2003
 

TAIPEI - The Executive Yuan (Cabinet) yesterday instructed the Ministry of Transportation and Communications (MOTC) to revise the statute for tourism development and let visiting foreign tourists to make duty-free shopping in Taiwan

Eager to drum up tourism promotion and lure more tourists to Taiwan after the visits of foreigners to Taiwan dropped 3.6% in the January-November period in 2002 from the previous year, the Cabinet is trying to take more diversified approaches

Officials said that as shopping constitutes a major activity for tourists, the offering of incentives like the exemption of the 5% business tax for visiting foreigners should enhance the attraction of Taiwan

The tax-exemption incentive for foreign shoppers have been discussed by various government agencies in previous meetings with the Ministry of Finance expressing concern about the reduced tax revenues for the government

Officials at the Tourism Bureau under the MOTC said they will continue coordination with other government departments as there are also opinions that the measure would not be fair for local people who still have to pay the tax. They aim to send the revised draw rules to the Legislative Yuan for reviewing and ratification during the upcoming session.
 

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