TAIPEI (Taiwan News) – The government will likely agree to vehicle license tax exemptions for electric vehicles to be extended five years until the end of 2030, a lawmaker said Friday.
Tax benefits were scheduled to end on Dec. 31 this year. As a result, manufacturers and distributors are anxious the sale of EVs could crater, the Liberty Times reported.
DPP Legislator Lin Chun-hsien (林俊憲) said a meeting this week with representatives from the tax department of the Ministry of Finance, the Ministry of Economic Affairs, and the Ministry of Transportation agreed to give the tax exemption an added five years. During the final year leading up to the restoration of the tax, an evaluation of the tax system would have to be conducted, he said.
The past year saw the registration of 38,000 EVs, or 8.3% of the total number of 457,800 new cars. While an increase of more than 50% over 2023, the market share of EVs is still relatively low.
It is hoped that having the tax exemption last until 2030 will help the government’s goal of reaching a 30% market share for EVs the same year, and achieving a zero carbon emission level by 2050.