The Legislative Yuan passed a preliminary reading on November 12, which combines the proposals from the Cabinet and the Legislators to reduce commodity tax for new car and motorcycle buyers in exchange of either exporting or discarding their used vehicles.
According to the proposed revision to the Commodity Tax Act, a NTD$50,000 commodity tax deduction will be offered to individuals or businesses purchasing a new car within six months after selling an old one. Motorcycle buyers will receive a tax reduction of NTD$4,000 when buying new motorcycle that is under 150 cc.
The car or motorcycle to be exported or discarded will now have to be more than six years or four years old, respectively, and must have been held by the seller for at least one year prior to its disposal.
Director General Ming-Ji Wu of the Industrial Development Bureau expressed his appreciation for the support from Ministry of Finance and the Legislators. Government will integrate all related agencies to build a complete used car export system.