Taiwan's Cabinet Has Recently Agreed to Refund Duty Imposed on Raw Material Imports

Responding to the suggestion from the Chinese National Association of Industry and Commerce(CNAIC),Taiwan's Cabinet has recently agreed to refund duty imposed on raw material imports taxed below 4%so long as such stock is to be used for export.

Finance Minister S.H.Chang says the industries to benefit from the tax refund include electronics,auto parts,chemicals,plastics,textile,and metal,with the total refund estimated to be NT$400-500 million(US$13.33-16.67 million).

Insiders say that CNAIC members proposed the refund to Premier Sean Chen at a luncheon recently in Tainan,southern Taiwan.

Over 4,000 imported raw materials are taxed below 4%,of which 2,500 items are duty-exempt and the remaining 1,500 items will be subject to tax refunds under the new rule,which will help to boost competitiveness of export-oriented small-and medium-sized enterprises.