Finance ministry to raise income tax paid by banks, insurers

Taiwan's finance ministry said on Monday it will raise the income tax paid by banks and insurance companies to five percent from two percent now, in a move some economists see as the first step toward raising some corporate taxes.

The tax increase for banks and insurers, which is still subject to parliament approval, is part of Taiwan's broader effort to tackle its rising debt.

Debt has surged in the past years, rising to USD182 billion as of January, according to local media reports. No comparison figure was available.

Banking stocks fell 1.7 percent on Monday after local media reported the tax hike. The main share index slipped 0.5 percent.