TAIWAN PREMIER UNVEILS MEASURES TO BOOST ECONOMY.

TAIPEI, Dec 1 Asia Pulse - Premier Frank Hsieh unveiled Wednesday a series of measures to boost the economy, which include relieving the tax burden on taxpayers to stimulate consumer spending.

Others include promoting the growing of biomass energy crops, stepping up urban renewal, boosting the economy in aborigine areas, and launching cross-Taiwan Strait chartered flights.

On the measures to relieve the tax burden, the standard deduction for married couples filing their income tax jointly will be increased from NT$67,000 (US$2,000) to NT$88,000 this year, Hsieh said.

In line with the rise in consumer prices, the personal income tax exemption will be hiked from NT$74,000 to NT$77,000 starting next year, while the standard deduction for married couples will be further increased to NT$92,000, while the special deduction on salaries and that for the mentally or physically challenged will each be raised by NT$3,000, Hsieh said.

Finance Minister Lin Chuan estimated that the reductions will relieve the tax burden on taxpayers by a total of NT$6 billion in two years.

In addition, the exemptions and deductions for inheritance tax and gift tax will be hiked, with the tax rate differentials widened, Hsieh said, adding that the government will amend the law governing futures trading to decrease the futures transaction tax.

On measures to promote the planting of biomass energy crops, Hsieh said the government will provide guidance to farmers to grow crops such as soybeans, sunflowers, canola, sugarcane, sweet sorghum, sweet potatoes and cassava on fallow farmland in the spring and fall for use as sources of biodiesel.