Cabinet approves draft amendment to extend tax rebates for appliances

Taipei, May 1 (CNA) Taiwan's Cabinet on Thursday approved a draft amendment to the Commodity Tax Act that seeks to extend a tax incentive program for energy-efficient household appliances until 2027.

Under the program, consumers can receive a tax reduction of up to NT$2,000 (US$62.28) when purchasing new refrigerators, air conditioners and dehumidifiers that meet Level 1 or 2 of the energy-saving standards specified under the Bureau of Energy's energy-efficiency rating program.

If passed by the Legislature, the tax rebate program which is set to expire on June 14 this year would be extended until Dec. 31, 2027.

As of the end of March, the government had offered rebates of about NT$21.1 billion (US$657.27 million) on 12.71 million units of household appliances since the measure was adopted in June 2019, the Ministry of Finance (MOF) said.

Meanwhile, an additional provision has also been included in the draft amendment authorizing the Executive Yuan to seek another extension (maximum of two years) after 2027, the MOF said.

The purpose, it said, was to allow for rolling reviews of the policy's effectiveness to ensure the efficient use of government resources.

Citing Premier Cho Jung-tai (卓榮泰), Cabinet spokesperson Michelle Lee (李慧芝) said during a news conference that encouraging consumers to buy energy-saving home appliances could help advance the government's goal of achieving net-zero emissions by 2050.

According to Lee, Cho also urged that the finance ministry and the Ministry of Economic Affairs actively communicate and coordinate with the Legislative Yuan so that the amendment can be passed as soon as possible to ensure a continuation of the program.