The Feast and Amusement Tax Act was first promulgated in April 1942 with a view to supporting the financing of local governments and to extend protection to social customs. The feast tax, however, proved too difficult to administer. Audit manpower in the competent authorities was insufficient to prevent tax evasion by consumers and restaurants for their mutual benefit. Further, few developed countries have levied a feast tax. Thus, to improve the tax system and to lessen the difficulties in tax administration, the government abolished the Feast and Amusement Tax Act in June 1980, canceling the feast tax as such and integrating it into the business tax; the Amusement Tax Act was enacted at the same time as the legal basis for the assessment of the amusement tax.

The most recent amendments to the Amusement Tax Act were promulgated on May 20, 2026, removing cultural and artistic activities and skill competitions and contests from the scope of taxable amusement items, while retaining dance halls, golf courses, and other taxable items. The amendments also authorize municipal and county (city) governments to suspend the levy of the amusement tax, lower the statutory maximum tax rates applicable to dance halls and other taxable items, and stipulate that other taxable items shall be announced by the MOF. On May 22, 2026, the MOF announced nine categories of other taxable amusement items in order to provide clear guidance for tax authorities and taxpayers, rationalize the tax system, and enhance local fiscal autonomy.