Legislators yesterday put a halt to the review of a proposed statute that would lower tariffs on motor vehicles due to the increasingly limited prospects for Taiwan's accession into the WTOs this year.
Although the government is keen to rush the statute through the Legislative Yuan, the Yuan's finance committee didn't see a pressing need for it to be enacted, and decided to leave its review to a later date.
"Hopes for Taiwan's entry into the WTO this year are fading away," said Lai Shyh-bao (
"When the Ministry of Economic Affairs is considering canceling the preferential treatment that Taiwan promised to give to US agricultural sectors prior to Taiwan's accession into the WTO, why does the Ministry of Finance continue to press ahead with the tariff enactment?" he said.
According to current commodity regulations, vehicles with engine sizes of 2000cc and below are taxed at 25 percent.
Those with engines between 2,001cc and 3,600cc are subjected to a 35 percent commodity tax.
Vehicles with engines larger than 3,600cc are taxed at 60 percent.
Under the proposed statute, Taiwan would replace its current system of three commodity tax levels based on engine displacement, with a two-tier system.
Upon WTO accession, the tax would remain at 25 percent for vehicles of 2,000cc and below. However, vehicles with engine sizes of 2,001cc and above would be taxed at 35 percent.
The proposed statute would also cancel a 3 percent credit given to vehicles and motorcycles with locally designed engines, chassis, and bodies.
While the proposed statute also states that it will only be put into effect after Taiwan joins the WTO, the cancelation of this local design credit would eliminate what is regarded as the last piece of trade protection for the local motor vehicle industry.
It would also reduce the import tariffs on vehicles with engine sizes above 3,600cc, such as Lincoln and Benz 500 vehicles, from the current 60 percent to 35 percent.
According to the Ministry of Finance, the elimination of the local design credit would raise the commodity tax on locally-made vehicles to between NT$100,000 and NT$120,000 per vehicle.
They are currently taxed at a range of between NT$80,000 and NT$100,000.
The tariff reduction would also result in an annual loss of between NT$500 million and NT$600 million for the nation's coffers.
Although the ministry's vice minister, Yen Ching-chang (顏慶31), tried to persuade the committee to push through the updated statute, the committee members were not convinced.
Taiwan has never given up its hopes of gaining WTO membership, Yen said, and the enactment of the statute would help Taiwan's bid to enter the WTO.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
RSS