The finance committee of the Legislative Yuan has approved the luxury tax bill on Wednesday, which may go into effect in June at the earliest.

The new proposal will impose a ten to fifteen percent tax on properties that are sold within two years of purchase, along with high-end items that are worth more than 3 million NT dollars, including vehicles, airplanes, and yachts.

The financial commissioners of the Legislative Yuan finished the review of the first draft of the luxury tax bill with majority of the members supporting it.

The bill is backed up by President Ma Ying-jeou himself, currently, 26 articles of the bills passed the first reading, including, those properties transferred within 2 years after acquisition are subject to 10% to 15% luxury tax, while luxury items such as cars, yacht, helicopter, private jet costing over NT$ 3 million are subject to 10% luxury tax. In addition, the same 10% would apply to furniture costing over NT$500,000.

Other items such as tortoise shell, coral, ivory, fur are all subject to 10% luxury tax, however, not including the non-endangered, non-protected corals.

The first reading of the draft eliminated the article for other certified person by the Ministry of Finance and the article to exempt housing addition and city renewal costs.

The much-debated farming house and pre-constructed real estates are not included in the luxury tax bracket.

Some legislators pointed out that, once the third reading was passed, the bill would go into effect by June 1st at the earliest.