Taiwan law-makers pass car tax cuts motion

Shanghai, January 8 (Gasgoo.com) Earlier this week, the Taiwan legislature's finance committee has approved the first reading of a motion proposed by the finance authorities to offer a commodity tax cut for small cars below 2,000cc, according to local news reports.

Under the proposal, all buyers who purchase small cars under 2,000cc before the end of 2010 will be offered a commodity tax cut of NT$30,000 for each car they buy. The proposal also applies to motorcycles, small pickup trucks and vans, Taibei Times reported Tuesday.

Finance Minister Lee Shu-der estimated the tax rebate measure adopted by the lawmakers will cost the island's public coffers a NT$9 billion in tax revenues this year but will help revive the development of local auto industry.

Taiwan's auto industry has generated annual production revenues of between NT$400 billion and NT$500 billion per year. But the industry has contracted for three consecutive years, he said, cited by The China Post.

Separate statistics show that only 229,495 new car registrations were issued in 2008, a sharp reduction of 30 percent from the previous year and hitting the lowest level in more than two decades.

A total of three readings are needed to pass the proposal into law, the report said. The current session is scheduled to end next Tuesday.