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Cabinet delays decision on fuel tax shift
CONSUMPTION:
The Executive Yuan said that it needed to assess the impact that changing the way the tax is determined would have on consumers and the economy
By Shih Hsiu-chuan
STAFF REPORTER
Tuesday, Dec 11, 2007, Page 3
The Cabinet yesterday upset Democratic Progressive Party (DPP) lawmakers pushing for a change in the way the vehicle fuel tax is imposed to encourage the use of public transportation.
A proposal by DPP Legislator Wang To-far (王塗發) and several colleagues to amend Article No. 27 of the Highway Law (公路法) passed its preliminary review in the legislature's Transportation Committee last week.
The fee is now levied on cars according to their exhaust volume. The amendment would change the gauge to the vehicle's fuel consumption rate.
"The government is supportive of the amendment, but we should also consider the impact the new measure might have before carrying it out," Cabinet Spokesman Shieh Jhy-wey (謝志偉) said after the Cabinet meeting.
He said the government needs to assess the level of influence the measure would have on the economy and commodity prices.
Premier Chang Chun-hsiung (張俊雄) delayed a decision on the proposed amendment until an overall assessment is finished, Shieh said.
Upon hearing the Cabinet's decision, Wang said, "It's so disappointing that the government resisted the reform for fear of losing revenue."
Wang said the Ministry of Transportation and Communications earns around NT$40 billion (US$1.23 billion) a year from the fuel tax, which he said was about twice what it is should obtain from vehicle owners.
Wang said the system penalizes vehicle owners who do not drive very often, while changing to a fuel-consumption basis would help reduce energy consumption.
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