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Total mortgages offered by the nation’s banks continued to grow in July, albeit at a slower pace following amendments to the Income Tax Act (所得稅法), which took effect on July 1, data compiled by the Financial Supervisory Commission showed last week.

The revised “integrated house and land transaction income tax” is 45 percent on gains from the sale of property within two years of purchase, and 35 percent on sales made within two to five years of purchase.

The new tax rates apply to individuals and institutions.

Previously, the tax rate was 35 percent for sales made within one to two years of purchase and 20 percent for transactions made at least two years after purchase. Those only applied to individuals.

While some analysts had expected the new tax scheme to cool the nation’s overheated property market, overall mortgages offered by local banks still rose by NT$43.2 billion (US$1.56 billion) to NT$8.41 trillion as of the end of July, commission data showed.