The paper will primarily discuss Japanese fiscal reform in Taiwan Government-General during the Gotō Shinpei period, analyzing Gotō Shinpei’s changes to land tax reform, customs/tariff and commodity taxes, as to the monopoly system on opium/camphor/salt. Meanwhile, in order to clarify the characteristics of these changes in terms of Taiwan’s long term financial history, we will compare it from the qualitative institutional aspect and the quantitative statistical aspect, with similar reforms made by Liu Ming-chuan during the late Qing Dynasty, in order to gauge the historical significance of Gotō Shinpei’s fiscal reform. The paper discovers that Liu Ming-chuan’s reform was largely dependent on patrimonial bureaucarcy and traditional governmentality, therefore failing to defeat organizational rent-seeking, corruption and inefficiency, and resulted in limited fiscal profit from the fiscal changes. Meanwhile, these fiscal changes usually aimed only to maximize fiscal revenue, without attempting to concurrently promote industrial development, hence to some degree hindered the progress of Taiwanese economic development. In contrast, Gotō Shinpei’s reform was mostly implemented through rational bureaucracy and modern governmentality, thus succeeded in overcoming organizational corruption and inefficiency, increased significantly the efficiency of tax revenue, and was able to boost Taiwanese central fiscal revenue by as much as 7 times in less than 10 years. On the other hand, these reforms had in mind not only the maximization of fiscal revenue, but also the modernist goal of promoting economic development, and Gotō Shinpei modernized various industries through these reforms. Finally, the paper admits that there are certain colonial traits to Gotō Shinpei’s fiscal reform, including the fact that it was not made with the Taiwanese as the central subject, instead aims to effectively incorporate Taiwan into the economic sphere of Japanese empire, promoting the interest of mainland Japan, and concurrently foster collaborators that are beneficial to colonial rule. Nevertheless, Gotō Shinpei’s fiscal reform is, as a whole, beneficial to Taiwan’s modernization of economic development, benefiting not only mainland Japan, but also the society and people of Taiwan.