The Executive Yuan is expected to approve amendments tomorrow that would allow local governments to suspend amusement taxes as they see fit to promote the development of certain industries.
The changes to the Amusement Tax Act (娛樂稅法) would also reduce the maximum levy on various entertainment venues by half to bring them closer in line with actual practice.
The Ministry of Finance announced the changes on Aug. 12, and the Cabinet is expected to approve them tomorrow after the review period ended on Wednesday last week.
Photo: Lin Cheng-kun, Taipei Times
A Cabinet official said it hopes the legislature would review and approve the amendment during the upcoming session.
The ministry designed the changes in light of practical use, as most of the maximum tax amounts are far above what is actually charged.
For example, the maximum allowable amusement tax on movie tickets for Chinese-language films is 30 percent, but local governments only charge at most 1 percent.
The change would see the maximum possible tax lowered to 15 percent for all films, down from the current 30 percent for Chinese-language films and 60 percent for foreign-language films.
The maximum rate for professional singing, storytelling, dance, circuses, magic shows, acrobatics shows and nightclub performances would also be lowered to 15 percent from 30 percent.
Drama and musical performances, and amateur singing and dancing shows would be lowered to 2 percent from 5 percent.
Billiard halls and bowling alleys would be removed from the act entirely, while the maximum 20 percent tax on golf courses would remain unchanged.
To promote certain industries, local governments would also be given the ability to pause taxes on certain entertainment such as professional sporting events or concerts after making the appropriate financial reviews.
Additional reporting by CNA
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