TNAG-0230-FCO40-266-Conditions-of-employment-of-labour-force-in-Hong-Kong-1970 — Page 74

The only way yet found to prevent the exploitation of workers is through the establishment of labor unions. When organized, the worker has a collective voice so strong that the employer must listen whether he wants to or not.

Taiwan has labor unions. They do not have the right to strike, how- ever, because of the state-of-war confrontation with the Communists. This weakens the voice of union labor and discourages new workers from membership.

To encourage the growth of unions and to give them power short of the peacetime right of striking, the government might consider the expansion of provisions for compulsory mediation and arbitration by fair-minded members of the citizenry.

If Unions were in a position to bring the employer before the court of public opinion, both working conditions and wages would be improved in many businesses and industries. The six-day week and the minimum wage could be enforced.

Workers who lack the weapon of the strike are largely at the mercy of the employer unless government steps in to redress the balance. A huge bureaucracy of enforement is out of the question. Mediation or arbitration as a part-time occupation of public-minded citizens is not.

We make no comment on this extract.

TAXES

The Tax system at present in use in Taiwan consists of various levies made on behalf of the three levels of government-central, provincial and local. In order to create a better climate for investment of foreign capital into channels of production, the Statute for Encouragement of Investment was promulgated on 10th September, 1960 and amended in January 1965. Some of the major benefits

are:

1. Income tax holiday extension to five years.

2. Limitation of business Income tax rate to 18%.

3. Tax exemption for earnings retained in the business. 4. Tax deduction for exports.

5. Exemption of customs duty on capital equipment.

6. Substantial reduction of business tax.

7. Periodic revaluation of assets.

Personal Income Tax

The Personal Consolidated Income Tax applies to income derived from business, professions, salary and wages, interest, rent, farming, mining, fishing and other sources and a tax is levied in the individual's consolidated income after allowances have been made for exemptions and deductions. The exemptions allowed are as follows:

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