Taipei, Feb. 22 (CNA) A tax incentive package to encourage purchases of energy efficient electricity appliances that was set to expire on June 14 will be extended an additional two years, the Ministry of Finance (MOF) said Monday.
The MOF publicly announced a draft amendment that day to the Commodity Tax Act to extend the tax breaks on select energy-saving home appliances until June 14, 2023.
Article 11-1 of the Act stipulates that up to NT$2,000 (US$71.64) in commodity tax reduction is offered on purchases of new refrigerators, air conditioners or dehumidifiers that meet either the Level 1 or 2 energy-saving standard as specified under the Bureau of Energy's energy efficiency rating program between June 15, 2019 and June 14, 2021.
The MOF said the incentive package has contributed greatly to energy savings and carbon emissions reduction, while reducing electricity bills for consumers.
However, according to an estimate from the Ministry of Economic Affairs (MOEA), old air conditioners and refrigerators aged 10 years or above account for 42.72 percent of those currently used in homes in Taiwan, making it necessary to extend the incentive measure, the MOF said.
Therefore, the ministry decided to amend the law to encourage consumers to buy energy-efficient products and promote the transformation of the electronics industry.
The draft amendment is subject to a 20-day public comment period starting the day of the public announcement.
As of the end of 2020, 2.657 million applications for tax deductions had been filed, which translates into NT$4.47 billion in tax rebates, according to MOF statistics.
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