TAIPEI (Taiwan News) — Taiwan passed an amendment to the Vehicle License Tax Act on Tuesday (Dec. 29) to extend a tax exemption for electric vehicles (EVs) until 2025.
Originally, Article 5 of the Vehicle License Tax Act, which was implemented in 2012, exempted EVs from the vehicle license tax until Dec. 31, 2021, according to CNA. The amendment passed by the Legislative Yuan on Tuesday will see this exemption extended until the end of 2025.
The amendment, which was proposed by the Ministry of Finance (MOF), was approved by the Cabinet on Nov. 4 and sent to the Legislative Yuan for review as part of the government’s push to promote electric vehicles, speed up EV industry development, and boost sustainable growth, CNA said.
The bill received strong bipartisan support. Kuomintang Legislator Yang Chiung-ying (楊瓊瓔) said the extension was needed to further encourage the adoption of electric vehicles. Citing MOF data, Yang said that NT$43 million (US$1.55 million), NT$170 million, and NT$360 million in vehicle license taxes were waived in 2018, 2019, and 2020, respectively.
Meanwhile, Democratic Progressive Party Legislator Michelle Lin (林楚茵) said it is vital to promote EV use to meet Taiwan’s goal of net-zero emissions by 2050.