The Cabinet has approved another extension of tariff cuts on several imported goods and commodities, such as beef, corn and gasoline, to stabilize consumer prices amid Russia’s ongoing invasion of Ukraine, the Ministry of Finance said.
The extension of the tariff reductions, some of which were first introduced on Dec. 1, 2021, would take effect on July 1 and remain in place for three to six months, the ministry said in statements released on Friday.
A business tax on imported corn, soybeans and wheat, which has been waived since Feb. 7 last year and set to expire on June 30, is to be extended to Dec. 31.
Photo courtesy of the Ministry of Finance
Prices of these products remain at a relatively high level, the ministry said, citing inflationary pressures caused by the Russian invasion of Ukraine on Feb. 24 last year.
Cuts of the commodity tax on Portland cement type I and reduced customs duties on two types of wheat, 16 beef products, butter and two types of powdered milk would also be extended to Dec. 31, it said.
A 29.3 percent commodity tax cut on gasoline and 37.6 percent tax cut on diesel would remain in place until Sept. 30.
In addition to the tax cuts on fuel, state-run oil supplier CPC Corp, Taiwan (台灣中油) had already been adjusting gasoline and diesel prices at the pump weekly.
The fuel reductions are based on a government formula to ease the effects of fluctuating international crude oil prices on local buyers.
The ministry said that extending the tariff cuts would reduce government revenue by NT$12.15 billion (US$396.28 million), but it hopes the measures can ease the higher costs facing local manufacturers and avoid them being passed on to consumers.
The consumer price index rose 2.35 percent in March from a year earlier, while it was 2.54 percent higher in the first four months of the year compared with the same period last year, government data released earlier this month showed.
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