Taipei: Taiwan’s Cabinet has approved a draft amendment to the Commodity Tax Act aimed at extending a tax incentive program for energy-efficient household appliances until 2027. Under this initiative, consumers can benefit from a tax reduction of up to NT$2,000 (US$62.28) when purchasing new refrigerators, air conditioners, and dehumidifiers that comply with Level 1 or 2 of the energy-saving standards set by the Bureau of Energy’s energy-efficiency rating program.

According to Focus Taiwan, if this amendment is passed by the Legislature, the tax rebate program, originally set to expire on June 14 this year, will be prolonged until December 31, 2027. As reported by the Ministry of Finance (MOF), approximately NT$21.1 billion (US$657.27 million) in rebates have been granted for around 12.71 million units of household appliances since the measure’s introduction in June 2019.

An additional provision in the draft amendment permits the Executive Yuan to consider a further extension (up to two years) beyond 2027, as confirmed by the MOF. This clause is intended to allow for rolling reviews of the policy’s impact, ensuring the efficient allocation of government resources.

During a news conference, Cabinet spokesperson Michelle Lee, quoting Premier Cho Jung-tai, highlighted that encouraging the purchase of energy-saving appliances aligns with the government’s ambition to achieve net-zero emissions by 2050. Lee also mentioned Cho’s call for the finance ministry and the Ministry of Economic Affairs to engage proactively with the Legislative Yuan to expedite the amendment’s passage, ensuring the program’s continuation.