Despite TAIEX Volatility Exceeding 1,000 Points, June Securities Transaction Tax Hits Record High of NT$84.9 Billion

TAIPEI (CNA) — The Ministry of Finance released preliminary statistics on nationwide tax revenue for June today, showing that despite intense volatility in the Taiwan stock market, trading activity remained extremely robust, driving the net collection of securities transaction tax to NT$84.9 billion — a new single-month record, representing a 2.8-fold year-on-year increase. Cumulative securities transaction tax revenue for the first half of the year reached NT$333.6 billion, also a record high for the same period.

The Ministry of Finance unveiled preliminary data on nationwide tax revenue for June, with net collections reaching NT$1.1656 trillion, the highest ever for a single month, up 1.9 times year-on-year. This surge was primarily due to the extension of last year’s income tax filing and payment deadlines, causing tax revenues to be deferred into July. Among the increases, comprehensive income tax rose by NT$346.8 billion, business income tax by NT$340.4 billion, and securities transaction tax by NT$62.4 billion.

Liu Hsun-jung, Deputy Director of the Statistics Division at the Ministry of Finance, stated that the Taiwan stock market experienced significant volatility in June, with index fluctuations frequently exceeding 1,000 points. The index closed at 46,126 points at month-end, up 1,393 points (3.1%) from May, continuing its upward trend despite the turbulence.

Liu noted that despite the market's wild swings, trading remained highly active in June, with the daily average trading value reaching a record high of NT$1.5407 trillion — a 2.6-fold year-on-year increase, the second-highest growth rate since April 2004.

She added that June’s net collection of securities transaction tax reached NT$84.9 billion, surpassing the NT$80 billion threshold for the first time and setting a new monthly record. The year-on-year increase of NT$62.4 billion was also the largest monthly rise on record, with a growth rate of 2.8 times, marking the 11th consecutive month of positive year-on-year growth.

Notably, the first-half securities transaction tax revenue totaled NT$333.6 billion, up NT$218.1 billion year-on-year. Liu explained that this figure set dual records — both the highest first-half total and the highest year-on-year growth rate (1.9 times) since 1998.

Furthermore, compared to the original annual budget estimates set by the Ministry of Finance, the first-half securities transaction tax revenue achieved 275% of the allocated budget and 133% of the annual budget.

Liu added that as of today, the daily average trading value in July has been NT$1.2805 trillion, lower than June’s average. With market volatility intensifying, it remains difficult to assess whether trading volumes will continue to decline.

Other tax categories showing year-on-year growth include business income tax, comprehensive income tax, futures transaction tax, and customs duties, all of which reached record highs for the month.

Business income tax collected NT$588.3 billion in June, up 1.4 times year-on-year, primarily due to the deferral of last year’s income tax filing deadlines in response to U.S. reciprocal tariffs, pushing revenues into July, along with higher self-paid tax amounts from this year’s filings.

Comprehensive income tax collected NT$405 billion in June, up sixfold year-on-year, mainly due to the extended filing and payment deadlines last year.

Total tax revenue for the first half of the year reached NT$2.5876 trillion, the highest for any first half on record, up 81.5% year-on-year. This includes record highs for customs duties, business income tax, comprehensive income tax, inheritance tax, securities transaction tax, futures transaction tax, business tax, property tax, stamp duty, and entertainment tax.

Looking at tax revenue across government levels, the central government collected NT$1.7933 trillion in the first six months, achieving 136.2% of its allocated budget and up 87.5% year-on-year.

Liu noted that although the new Fiscal Revenues and Expenditures Allocation Act has reduced the central government’s share of business tax by 90.9%, increases in income tax (up 1.6 times due to timing differences and higher self-paid amounts) and securities transaction tax (up 1.9 times) have offset this, resulting in an overall increase.