[Taxation] Commodity Tax Cut for Dual-fuel Vehicles

Responding to the trend toward environmental protection and the need to reduce air pollution and carbon dioxide emissions, the Executive Yuan recently approved a draft revision of the Commodity Tax Act that will cut the tax by NT$25,000 for each newly purchased and registered LPG (liquefied petroleum gas) /gasoline dual-fuel vehicle for five years, beginning with the date of the revised law's implementation. With the NT$25,000 refueling vouchers that are already being offered for the new purchase or retrofitting of dual-fuel vehicles, this adds up to a total saving of NT$50,000 per vehicle. The Ministry of Finance notes that current government policy calls for the development of high-energy-efficiency and low-pollution vehicles. Since the vehicles used in Taiwan primarily use gasoline or diesel fuel, which cause relatively high emissions of carbon dioxide, the government hopes that the proposed tax cut will boost the incentive for drivers to buy dual-fuel vehicles and for the auto industry to develop or import dual-fuel vehicles. Approximately 5,200 vehicles are expected to receive this benefit within five years. To encourage the retrofitting of the overall taxi fleet, the NT$25,000 refueling vouchers can be used directly to offset the cost of retrofitting taxis. The Ministry of Economic Affairs plans a gradually increase in LPG filling stations and is offering a construction subsidy of up to NT$10 million for each one, with the aim of adding 150 of them within five years. The government will also promote the priority purchase and retrofitting of dual-fuel public vehicles in order to take the lead in responding to the policy of environmental protection.