Taipei, Dec. 23 (CNA) Amendments to commodity and vehicle license tax laws for electric vehicles that will extend an exemption of these taxes for an additional five years cleared the Legislative Yuan on Tuesday.
With the current exemptions of commodity and vehicle license taxes for consumers to buy EVs that were launched in January 2022 set to expire at the end of this year, the Legislative Yuan passed the amendments without objections to extend the preferential status to Dec. 31, 2030.
The amendment to the Commodity Tax Act that was passed will extend the exemption of the commodity tax for EV purchases, but continue to limit it to a taxable value of NT$1.4 million (US$44,423) per EV, with amounts in excess of that not receiving tax-free status.
The amendment to the Vehicle License Tax Act will also extend the exemption of the license tax for another five years.
The exemptions of the commodity tax and vehicle license tax for EVs took effect in January 2011 and in January 2012, and the exemption has been extend several times, according to the MOF.
As of the end of November, the exemption of the EV commodity tax has cost the treasury a cumulative NT$28.9 billion, while the exemption of the EV vehicle license tax has cost the government a cumulative NT$9.2 billion, the Ministry of Finance (MOF) said.
The MOF said there was a consensus among ruling and opposition lawmakers to support extending the tax exemption before the amendments were passed Tuesday.
The MOF said the exemptions will give consumers incentives to buy low-pollution vehicles and help boost the penetration of EVs in the local vehicle market to benefit the environment and living standards.
