Taipei: 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 stated at the Cabinet meeting that this extension is part of Taiwan’s strategy to meet its 2030 vehicle electrification goals and to further its long-term vision of achieving net zero emissions by 2050, as noted by Cabinet spokesperson Michelle Lee.

According to Focus Taiwan, the proposed amendments to the Commodity Tax Act and Vehicle License Tax Act will now proceed to the Legislative Yuan for review. Currently, fully electric vehicles benefit from an exemption on commodity taxes upon registration, provided the taxable value does not exceed NT$1.4 million (approximately US$46,460) for sedans. Any amount above this threshold remains subject to taxes, as explained by Ministry of Finance Taxation Administration Director-General Sung Hsiu-ling. Furthermore, local governments hold the authority to grant exemptions for vehicle license taxes.

Between January 2011 and July 2025, around 890,000 EVs have benefited from commodity tax exemptions amounting to NT$25.8 billion, with an additional 110,000 vehicles exempted from license taxes totaling NT$9 billion, Sung reported. She estimated that these measures contributed to a reduction of 1.02 million tonnes of carbon dioxide emissions from 2022 to 2024. Moreover, the EV industry in Taiwan has generated an annual output value of NT$100 billion and has created over 16,500 jobs.