Taiwan Extends Tax Cuts to Combat Rising Oil Prices and Inflation

Taiwan has extended tax cuts on key raw materials for six months to mitigate the impact of rising international oil prices and persistent inflation. Vice Premier Cheng Li-chiun announced the extension, saying that the government will maintain domestic fuel prices at the lowest level among neighboring Asian countries.

The Cabinet's price stabilization task force is monitoring petrochemical products, industrial paper, and steel, and has instructed joint price inspection teams to intervene promptly if irregularities emerge. The sustained rise in international oil prices could add to inflationary pressure, with the consumer price index increasing by more than 2% year on year for four consecutive months from May through August.

The government will exempt wheat from import tariffs and cut tariffs on butter, baking milk powder, and beef by 50%. It will also reduce commodity taxes on gasoline and diesel, as well as halve commodity taxes on cement and liquefied petroleum gas. These measures aim to lower operating costs for businesses and limit the impact of global commodity price fluctuations on domestic prices.