Taichung becomes 'tax delinquency paradise' as outstanding taxes soar

Taichung is facing increasing scrutiny over its financial management, with city councilors highlighting a dramatic surge in tax delinquency cases and amounts over the last decade. Councilor Lin Chi-feng pointed out that tax delinquency cases have ballooned by 2.4 times, from 99,235 in 2015 to 235,769 in 2024, while the outstanding tax amount has climbed from NT$760 million to NT$1.37 billion. This alarming trend has led to Taichung being labeled a "tax delinquency paradise," a stark contrast to Mayor Lu Shiow-yen's self-proclaimed fiscal discipline.

Further compounding these concerns, councilors Lin Chi-feng and Shih Chih-chang revealed that only 65.19% of the projected NT$89.7 billion from 29 revenue and expenditure plans has been achieved, indicating a need for improved financial oversight. The proportion of residents in tax arrears has also nearly doubled, from 3.6 per 100 people in 2015 to 8.2 per 100 in 2024. This situation raises questions about the city's ability to manage its finances effectively and generate necessary revenue for public services, especially as the city government has also announced plans to issue public bonds.

In response, the Director of the Land and Tax Bureau, Shen Cheng-an, defended the city's efforts, attributing the rise in outstanding taxes to more aggressive tax collection drives. He noted that over NT$2 billion in back taxes have been collected in the past three years, ranking Taichung second among the six special municipalities. While the city has previously received top rankings for tax cleanup, its recent performance has slipped to second place. This ongoing debate underscores the challenges Taichung faces in balancing its financial obligations with its development goals, a narrative often framed differently in local discourse compared to international financial reporting.