November 7, 2011


Taiwan mulls tariff cut for infant milk powder


Taiwan's government may consider reducing the tariffs on baby milk powder and formula milk powder, currently standing at 5% and 12%, respectively.

The Ministry of Finance's (MOF) Tariff Committee will meet on November 14 to discuss whether to continue reducing the tariffs on butter, cane sugar, soymeal, corn flour and other imports.


Lawmakers, however, recently pushed through a proposal that calls for the inclusion of milk powder on the meeting's agenda and a temporary reduction of the tariff on its import.


In response, MOF Minister Lee Sush-der said the government would carefully consider the proposal and work for a reduction. Meanwhile, parents are complaining about the steadily rising prices of the sustenance for babies.


In view of the rising prices of bulk materials, the MOF has repeatedly reduced tariffs on the international market. The ministry's most recent rate reduction, its June 1 introduction of a temporary tariff rate on cheese, dehydrated cream, corn flour, soymeal, fine grain cane sugar and refined sugars, is set to expire on November 30. The reduction has varied from 25% to 50%.


In the past, MOF also has reduced the tariffs on milk powder for babies, skimmed milk power, full-fat milk powder, and various kinds of formula milk powders. However, only the tariff rates on skimmed milk powder and full-fat milk powder will definitely stay reduced.

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