March 10, 2009
Taiwan to renew sales tax exemption on four commodities
Taiwan will renew tax exemptions on four types of commodities effective Tuesday (March 10) for a period of one year, the government's tax agency said in a statement late Monday.
The exemption of the 5 percent sales tax on wheat, barley, corn and soy will last until March 9, 2010 said the Taxation Agency.
The agency decided on this measure to reduce the cost of imports on local businesses and the burden on consumers, as the island doesn't produce any of these commodities.
"Amid the global economic downturn, Taiwan's external trade has also continued to contract. If the New Taiwan dollar continues to fall, this will only push up import costs on these goods," the agency said in the statement.
The agency had implemented a similar one-year tax exemption in March 2008, the statement added.
Taiwan's exports in February fell 28.6 percent on year as the global economic downturn continued to weigh on demand for the island's shipments of mainly electronic goods, the Ministry of Finance reported Monday.
The New Taiwan dollar ended Monday at NT$34.815, higher than Friday's close of NT$34.780.
