May 18, 2012
Taiwan will end lower milk powder import tariffs
Citing cheaper raw material prices and worried that local businesses are profiting from the lower tariffs, Taiwan's slashed milk powder imports tariffs will end on May 24, according to the Legislature's Finance Committee on Wednesday (May 16).
Proposed by ruling Kuomintang Legislator Lu Shiow-yen, the motion to cease reduced duties on imported infant milk powder, formula milk powder and other milk powder was passed by the committee earlier in the day.
The decision came less than a week after the Ministry of Finance announced it will extend the adjustment in tariffs on imported milk powder until November 24 this year, and on butter, corn powder and soy flour until November 30, in an attempt to stabilise commodity prices in the country.
Since the ministry implemented the flexible tariff policy on imported milk powder half a year ago, major milk powder businesses in the country have failed to reflect the lower tariff on retail prices, Lu noted.
She asked the ministry to conduct tax audits on milk powder businesses to see whether they have been cashing in on the policy.
Finance Minister Christina Liu said during the committee's question and answer session that she would look into the matter and provide answers within a month.