Committee proposes energy tax increase in Taiwan

Taiwan’s Tax Reform Committee has reached a consensus to introduce an incremental levy on gasoline, diesel fuel, gas and other energy sources, as well as on greenhouse gas emissions, but remained undecided over proposed pollution taxes. The reforms, which seek to enhance energy conservation and rein in the nation’s carbon dioxide emissions, will head next to the Cabinet and legislature and, if agreed, are expected to take effect in 2011. However, Premier Wu Den-yih said that although the proposed energy tax is commendable and has been implemented in several industrially advanced countries, the time is not ripe yet to adopt it in Taiwan, especially “when the domestic economy has just begun to bottom out from a year-long downturn…” (October 20, 2009)