Commodity Tax Reduction Plan: Tax Rebates for Purchasing Energy-Saving Appliances, Cars, Motorcycles, and Electric Vehicles

Recently, the government of the Republic of China announced the latest round of commodity tax reduction, rebate, and even exemption plans, covering energy-saving appliances, cars, motorcycles, and electric vehicles. This new reduction policy aims to encourage consumers to buy more energy-efficient products and promote the goal of reducing carbon emissions.

Energy-Saving Appliance Tax Rebate Plan

First, purchasing a legally sold, brand-new refrigerator, dehumidifier, or air conditioner/heater within the country that has an energy efficiency rating of Level 1 or 2, is not for resale, and is non-returnable allows you to apply for a commodity tax rebate1. You can save up to NT$2,000 per unit.

How to participate:

• Submit an application within 6 months from the day after the purchase date.
• The discount period runs until June 14, ROC year 112 (2023).
• Parallel imports that have not obtained domestic energy-saving label certification are not eligible.

Vehicle Replacement Tax Rebate Plan

Second, purchasing a car or motorcycle and completing new license plate registration allows you to apply for a vehicle replacement tax rebate2.

Cars and Motorcycles

For scrapping an old car (registered for at least 1 year and manufactured at least 10 years ago) or an old motorcycle with an engine displacement of 150cc or less (manufactured at least 4 years ago), you can save up to NT$50,000 per new car and up to NT$4,000 per new motorcycle.

How to participate:

• Cars refer to passenger cars, light trucks, and passenger-cargo dual-purpose vehicles.
• Submit an application within 6 months from the day after meeting the rebate requirements.
• The discount period runs until January 7, ROC year 115 (2026).

Large Vehicles

Purchasing a large vehicle and completing new license plate registration allows you to scrap and replace a Phase 1-3 large vehicle, saving up to NT$400,0003.

How to participate:

• Large vehicles refer to large passenger cars, large trucks, large passenger-cargo dual-purpose vehicles, substitute large passenger cars, large special-purpose vehicles, or tractor-trailers.
• Submit an application within 6 months from the day after meeting the rebate requirements.
• The discount period runs until December 31, ROC year 115 (2026).

Tax Exemption for Buying Electric Vehicles

Finally, purchasing an electric vehicle powered entirely by electricity and completing new license plate registration exempts you from commodity tax. However, electric passenger cars are only exempt if their dutiable value is NT$1.4 million or less; the portion exceeding that is taxed at half rate. This runs until December 31, ROC year 114 (2025).

Recently, if you are considering buying energy-saving appliances, cars, motorcycles, or electric vehicles, don’t miss the various reduction and rebate offers! These offers not only save you a lot of money but also let you work together toward the goal of energy saving and carbon reduction, doing your part for the Earth! So seize the opportunity and buy the products you want!

References

1. Dedicated Area for Commodity Tax Reduction on Purchases of Energy-Saving Appliances
2. Dedicated Area for Commodity Tax Reduction and Rebate on New Vehicle Purchases When Scrapping or Exporting Used Cars and Motorcycles
3. Dedicated Area for Commodity Tax Reduction on New Vehicle Purchases When Scrapping Old Large Vehicles