Tax Cuts Planned To Boost LPG Car Sales

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The Taiwanese government has taken the first steps towards a reduction in the commodity tax on hybrid vehicles powered by liquefied petroleum gas (LPG). An amendment passed on November 26 will see the commodity tax lowered by TWD25,000 (US$775) per vehicle over a five-year period, which according to the Finance Ministry, should result in demand for 5,200 LPG hybrids. However, the government will also lose TWD136.5mn (US$4.2mn) in tax revenues over the five years. The existing tax stands at 25% for cars with engines under 2,000cc and 30% for engines over 2,001cc.