MOEA proposes tax breaks for EVs in Taiwan.

Taipei, Aug. 20, 2009 (CENS) -- Taiwan's Ministry of Economic Affairs (MOEA) is evaluating to provide a five-year tax break for hybrid electric vehicle (HEV), plug-in hybrid electric vehicle (PHEV), and battery electric vehicle (BEV) sold in Taiwan in the first five years of development to foster the industry.

Economics Minister Yiin Chii-ming recently said the MOEA plans to propose a five-year break for both commodity and license taxes levied on PHEVs, HEVs, and BEVs in Taiwan. If the Ministry of Finance (MOF) has different opinions, Yiin said he would apply to the Cabinet) for final decision.

MOEA said that Taiwan has deployed EV global development early to enhance competitiveness when many firms will have launched EVs in 2014 and 2015.

According to the MOEA's initial evaluation, a homegrown BEV will retail for about NT$1.3 million (US$40,000 at US$1: NT$32.5), or about NT$1.1 million (US$33,865) if exempt from commodity and license taxes, making such tax breaks incentives for consumers.

Current tax regulations stipulate the license and commodity taxes of a new vehicle to be according to an internal combustion engine (ICE) displacement. The MOEA hopes that the two taxes for the three EVs would be fully waived in the first five years when the government formally announces an overall plan to develop the EV industry on the island.

The MOEA and MOF have held several meetings to discuss the tax break issues, but the latter is against waiving commodity and license taxes to EVs except for the fuel tax.

((QL))(GE)