Chen Shih-chung Proposes Securities Transaction Tax For Health Insurance

Taiwanese legislator Chen Shih-chung has proposed using a portion of securities transaction taxes to fund the national health insurance system. The proposal suggests allocating 0.3 percent of securities transaction tax to supplement insurance funds, similar to the tobacco tax model. The proposal suggests a 0.3% tax rate to address severe health insurance financial challenges. The proposal aims to ensure the system's financial balance for approximately 20 years. Tax scholars have questioned the suggestion, and civil groups expressed concerns that the funding would become too dependent on market volatility. The plan also includes raising the threshold for supplementary premium reforms. Civil groups expressed concern that relying on securities taxes could make health insurance funding dependent on market volatility.