Cabinet approves bills on EV tax break extension

Taipei, Sept. 18 (CNA) The Executive Yuan on Thursday approved proposed amendments to extend commodity and vehicle license tax breaks for electric vehicles (EVs) by five years to Dec. 31, 2030.

Premier Cho Jung-tai (卓榮泰) said at the Cabinet meeting that the extension aims to help Taiwan meet its 2030 vehicle electrification milestone and advance its long-term vision of net zero emissions by 2050, according to Cabinet spokesperson Michelle Lee (李慧芝).

The proposed amendments to the Commodity Tax Act and Vehicle License Tax Act will be sent to the Legislative Yuan for review.

Currently, fully electric vehicles are exempt from commodity taxes upon registration, up to a maximum taxable value of NT$1.4 million (US$46,460) for sedans.

Any amount exceeding that value remains taxable, said Ministry of Finance Taxation Administration Director-General Sung Hsiu-ling (宋秀玲). Local governments are authorized to provide tax exemptions for vehicle license taxes, she added.

From January 2011 to July 2025, about 890,000 EVs benefited from commodity tax exemptions totaling NT$25.8 billion, while 110,000 vehicles were exempt from license taxes worth NT$9 billion, Sung said.

She estimated the measures helped cut carbon dioxide emissions by 1.02 million tonnes between 2022 and 2024. The EV industry also generated NT$100 billion in output value annually and created more than 16,500 jobs, she said.