The Draft Amendment to Article 12-5 of the Commodity Tax Act has completed its third reading, with the Presidential Office confirming on September 5th the extension of commodity tax reductions for trade-ins of old cars and motorcycles, while also broadening the scheme to cover new vehicle purchases.

The incentives will take effect from September 7th. The Legislative Yuan passed the amendment on August 29th, extending the NTD 50,000 (US$ 1,600) commodity tax reduction for vehicle trade-ins by another five years, until December 31st, 2030.

For the first time, the programme has been expanded to include new car and motorcycle buyers. Under the revised rules, purchasers of passenger cars under 2,000 cc who complete licence registration after September 7th will receive a NTD 50,000 tax reduction.

Policymakers expect the measure to provide a strong boost to Taiwan's subdued automotive market by stimulating fresh consumer demand.

The amended framework offers notable savings for buyers:

Passenger cars under 2,000cc: NTD 50,000 tax reduction for new purchases. When combined with the NTD 50,000 trade-in subsidy for scrapping a car more than 10 years old and owned for over a year, the maximum benefit rises to NTD 100,000.

Motorcycles under 150cc: NTD 2,000 tax reduction for new purchases. Together with the existing NTD 4,000 trade-in subsidy for older motorcycles, the maximum benefit totals NTD 6,000.

This policy extension and expansion underscore government efforts to encourage vehicle replacement, support domestic auto sales, and advance Taiwan's broader economic and environmental objectives.