TAIPEI, Aug 1 (Reuters) - Taiwan's tax reforms committee will study whether the government should resume levying capital gains tax on stock income and land sales, newspapers reported on Friday, as part of efforts to increase the tax base.

Vice Premier Paul Chiu met lawmakers at the cabinet's tax reforms committee on Thursday and the committee will present its report within six months, the Chinese-language China Times said.

Taiwan has been logging a deficit for the combined central and local government budgets since 1999 partly due to huge spending on public infrastructure projects. [ID:nTP140180]

However, the chances of the government collecting taxes on stock gains again are very slim, the Economic Daily News quoted unnamed officials from the finance ministry as saying, on fears that the move could trigger selling in the local market.

Government officials were not available for comment.

Taiwan has not levied taxes on stock gains for nearly two decades, and shares tumbled the last time the government announced a plan to collect taxes on stock income.

"It's not likely that the government will impose the capital gains tax while the stock market is still struggling," said Bevan Yeh, fund manager at Prudential Financial Securities Investment Trust.

Around two hours into trade, Taiwan's main TAIEX index .TWII fell 1.4 percent to a two-week low after chip maker TSMC (2330.TW: Quote, Profile, Research) expressed concerns over demand in the third quarter. The TAIEX has fallen around a fifth so far this year. (US$1=T$30.7) (Reporting by Baker Li and Gina Chang, Editing by Jonathan Hopfner)