TAIPEI (TVBS News) — Legislators in Taiwan's Legislative Yuan Finance Committee (立法院財政委員會) approved a draft amendment extending electric vehicle tax exemptions to 2030 on Thursday (Dec. 4). They could not reach consensus on including hybrid vehicles in the exemption and how the central government will compensate local governments for tax losses. The committee left these issues for further cross-party negotiations.
The Executive Yuan, Taiwan's cabinet, recently passed revisions extending the tax exemption for electric vehicles by five years, until Dec. 31, 2030. New Taipei City has reported a tax loss of NT$1.17 billion (around US$37.4 million) since 2012, predicting an additional NT$3.8 billion (around US$121.4 million) loss if extended. Sung Hsiu-ling (宋秀玲), director-general of the Taxation Administration, noted the nationwide tax loss totaled over NT$9 billion (around US$287.5 million) in the past four years.
KMT lawmakers, the main opposition party, proposed that the central government should designate alternative revenue sources to offset local tax losses under fiscal discipline laws. KMT legislator Lin Ssu-ming (林思銘) suggested including hybrids with an electric range of over 80 kilometers (49.7 miles), citing their carbon reduction benefits. DPP lawmakers, the ruling party, argued the exemption for electric vehicles is a continuous policy that hasn't affected local finances.
Tsou Yu-hsin (鄒宇新), deputy director-general of the Industrial Development Administration, noted that Taiwan's net-zero transition strategy focuses on electric vehicles, excluding hybrids. He added that domestic automakers do not produce hybrids with the required electric range, implying that foreign cars would benefit from subsidies. Lin announced that the matter will proceed to cross-party negotiations as lawmakers remain divided over hybrid vehicle exemptions and local tax compensation. ◼
