Ministry of Finance: Authorizing Local Governments to Suspend Collection of Taxes on Dance Halls and Other Items Contributes to Economic Growth

(Central News Agency reporter Lu Yen-tzu, Taipei 24th) The Ministry of Finance stated today that the Legislative Yuan has passed the amendment to parts of the Entertainment Tax Act in its third reading. As entertainment tax is a tax for special municipalities and counties/cities, authorizing local governments to suspend the collection of taxes on dance halls or ballrooms, golf courses, and other taxable items should contribute to the prosperity of surrounding industries, promote local tourism development, and foster economic growth.

The Legislative Yuan today passed the amendment to parts of the Entertainment Tax Act in its third reading, deleting entertainment items for arts and cultural activities (such as movies, concerts, etc.) and competitive sports (such as various ball games), while retaining dance halls or ballrooms, golf courses, and other taxable items, and authorizing local governments to suspend their collection. At the same time, the statutory tax rate ceiling for dance halls or ballrooms and other taxable items has been lowered.

The Ministry of Finance explained that, according to the provisions of the Act Governing the Allocation of Government Revenues and Expenditures, entertainment tax is a tax for special municipalities and counties/cities. Counties should allocate all revenue collected in townships, towns, and cities to those townships, towns, and cities. In 2025 (ROC Year 114), the national tax revenue was NT$2.25 billion, and this tax revenue contributes to local construction and development.

The Ministry of Finance stated that since the implementation of the entertainment tax in 1942 (ROC Year 31), in order to develop arts and cultural activities and competitive sports, to rationalize the taxable items of entertainment tax, and to reserve fiscal autonomy for local governments, while considering local governments' industrial development, policy needs, and financial conditions, the Ministry of Finance drafted an amendment to the Entertainment Tax Act, which gained consensus for amendment after full discussion at the Legislative Yuan's Finance Committee meeting.

The Ministry of Finance pointed out that this amendment is based on the purpose of rationalizing the tax system and considering local fiscal autonomy. The deletion of taxable items for arts and cultural activities and competitive sports, and the authorization for local governments to suspend the collection of taxes on dance halls or ballrooms, golf courses, and other taxable items, should contribute to the prosperity of surrounding industries, promote local tourism development, and foster economic growth, thereby driving overall tax revenue growth. (Editor: Lin Ke-lun) 1150424

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