Taiwan MOF Cuts Import Duties on 23 Auto Parts

Taipei, June 4, 2009 (CENS)--To ease automakers' cost burden amid the downturn, Taiwan's Ministry of Finance (MOF) recently announced to cut the import duties on 23 auto parts by 50% from May 25 to December 31.

MOF's statistics show that the import value of the 23 auto-parts categories, including cylinder block, brake, brake caliper, suspension shock absorber, exhaust and muffler, radiator, air bag etc., was NT$27.17 billion (US$836 million) in 2008 (much higher in the previous years due to new-car sales in the year plunged by about 50%), translating into duties totaling NT$13.4 billion (US$411.1 million).

With the duties reduced, industry insiders said, however, the cost of a typical, locally assembled car would be cut by only NT$2,000 (US$62).

Statistics compiled by Industrial Development Bureau (IDB) of the Ministry of Economic Affairs show that sales of new cars in Taiwan peaked in 2007 to exceed 500,000 units, but the volume suddenly plunged to only 220,000 units in 2008. The MOF, as result, decided to help ease local auto assemblers' cost.

Quoting IDB's estimate, the MOF said that local automakers are expected to utilize the cost cut as rebate to consumers, who are expected to buy 50,000 more new cars this year compared to 2008.