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Cabinet approves extension of tax incentive for heavy duty vehicles
The cabinet has approved a draft amendment to the Commodity Tax Act aimed at extending the current commodity tax reduction period for buyers of new heavy-duty diesel vehicles until the end of 2026.
Under the current law, buyers of diesel buses and trucks from between 18 August 2017 and 31 December 2022 can have the commodity tax on the new vehicle reduced by a maximum of NT$400,000. The incentive applies to owners of old diesel vehicles that were rolled out of the factory before 30 September 2006, or those made between 1 October and 31 December 2006 that have received an emissions conformity certificate from the Environmental Protection Administration.
The Ministry of Finance says the aim of the tax reduction extension is to continue encouraging owners to retire their old diesel vehicles as part of ongoing efforts to tackle air pollution. According to the ministry, as of the end of October, over 39,000 old heavy-duty diesel vehicles had been phased out through the government's tax reduction incentive. The draft is subject to approval by the Legislative Yuan.
