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HONG KONG -- Poorly designed tax policies and rising unemployment have worsened the rich-poor gap in Taiwan, according to media reports reaching here Sunday from Taipei.

The gap between the rich and poor people has reached an alarming level in Taiwan in 2005, with the richest 720,000 households earning 35 times more than the poorest 720,000 households in the province, local media reported, quoting latest official statistics.

The richest 720,000 households in Taiwan had an average annual earning of 2.1 million new Taiwan dollars (US$64,024) in 2005, while the poorest 720,000 households' annual income reaching 58,000 new Taiwan dollars (US$1,768) the same year, leaving a gap of 36-1 between the rich and poor, according to the media reports.

The richest's 2.1 million new Taiwan dollars in 2005 represented an increase of 40,000 new Taiwan dollars from the previous year, while the poorest's 58,000 new Taiwan dollars posted a decline 3,000 new Taiwan dollars from a year earlier, the report said.