Government deliberating on extending fiscal incentives for energy-efficient appliances within the cabinet meeting.
The government in Taiwan has given a nod to a proposed revision of the Commodity Tax Act, with the aim of extending the tax break scheme for energy-efficient household appliances all the way to 2027.
This means consumers purchasing new fridges, air conditioners, and dehumidifiers that meet specific energy-saving standards could stand to receive a tax deduction of up to NT$2,000 (approximately US$62-$62.47) per item. As things stand, these appliances must meet Level 1 or 2 of the energy-saving standards specified under the Bureau of Energy's energy-efficiency rating program.
If everything goes according to plan and the amendment gets approved by the Legislative Yuan, the existing tax rebate program - due to expire on June 14 - would be extended until December 31, 2027.
Moreover, an additional provision has been tossed into the mix that empowers the Executive Yuan to request an extension of up to two more years beyond 2027[1][2][5]. The ultimate goal is to maintain the policy's effectiveness and ensure the judicious use of government funds.
As of March 2025, the government has offered rebates on approximately 12.71 million units of household appliances since implementing the measure in June 2019, saving consumers a whopping NT$21.1 billion in taxes and decreasing annual electricity consumption by about 515 million kilowatt-hours[2][5].
The extension proposal includes the possibility of further extensions until 2029, contingent on administrative review, in line with Taiwan’s aim of achieving a net-zero emissions target by 2050[5]. The newly proposed draft amendment is now waiting for the Legislative Yuan's approval[2][5].
[1] https://www.focus-taiwan.tw/news/aipl/202303300031.html[2] https://www.taitra.org.tw/modules/news/view.php?id=155708&rel_id=19834&myissue=[5] https://www.channelnewsasia.com/news/asia/taiwan-extend-energy-efficient-appliance-tax-rebate-2027-3046046
- The proposed revision of the Commodity Tax Act in Taiwan aims to extend the tax break scheme for energy-efficient household appliances, such as refrigerators, until 2027.
- If the amendment is approved by the Legislative Yuan, the tax rebate program for energy-efficient appliances, set to expire on June 14, could be extended until December 31, 2027, potentially including additional extensions until 2029.
- The extension of the tax break scheme is intended to maintain the policy's effectiveness and ensure the judicious use of government funds, aligning with Taiwan's goal of achieving a net-zero emissions target by 2050.
- As of March 2025, the government has offered rebates on approximately 12.71 million units of energy-efficient household appliances since June 2019, saving consumers a significant amount in taxes and decreasing annual electricity consumption by about 515 million kilowatt-hours.
