Promoting Healthier Choices and Consumer Welfare: Your Guide to Taiwan's Tax Amendment
- Written by: Lery Hiciano / Staff writer, with CNA
Lawmakers propose eliminating tax on beverages without added sugars
Get ready to pocket some extra cash on your favorite sugar-free drinks and household appliances! The Legislative Yuan's Finance Committee has proposed amendments to Taiwan's Commodity Tax Act that would make these items tax-free, boosting healthier choices and consumer welfare alike.
Lawmakers from different parties unanimously agreed that it's high time to make sugar-free beverages more affordable to the public. After all, health-related issues like dialysis for kidney disease, treatments for diabetes, and periodontal disease make up the top three expenses under Taiwan's National Health Insurance system – all linked to excessive sugar consumption.
So, they've introduced a bill encouraging manufacturers to step up their sugar-free beverage game and consumers to make better choices. Article 8 of the act already exempts pure natural fruit juices, fruit syrups, and veggie juices from the commodity tax. The proposed amendment extends this exemption to sugar-free beverages.
But that's not all – remember those vintage household appliances in your grandmother's house that were once considered luxury items? The draft amendment plans to exempt color TVs, video recorders, record players, and audio recorders from the tax. It's all about making these essential consumer goods more accessible, as questionable taxes have been raised regarding the fairness and legitimacy of slapping a 13% tax on these once-luxury items[1].
To help consumers reap the benefits of these tax exemptions, the committee has passed a resolution requiring the Ministry of Finance to share data on the commodity and business taxes applied to imported and domestically produced beverages, based on their price. Together with consumer protection groups, regulators will work to ensure these savings are being passed on to the public and not pocketed by manufacturers[1].
It's a win-win situation: promotion of healthier consumption choices, increased accessibility to household appliances, and government support for growing industries[1]. So, bottoms up for your next sugar-free beverage and happy shopping as you turn on your retro TV or pop in a vinyl record [1][2][3].
[1] The Taiwan News, "Sugar-free drinks could be exempted from tax under amendment", https://www.taiwannews.com.tw/en/news/4062497[2] Focus Taiwan News Channel, "Sugar-free beverages may be exempt from tax", https://focustaiwan.tw/a/20220317/art1014476[3] Central News Agency, "Commodity tax exemption bill for sugar-free drinks to be passed", https://www.cna.com.tw/news/acn/202203170001.aspx
- The proposed tax amendment in Taiwan could lead to savings on sugar-free drinks, aligning with a focus on health-and-wellness and fostering healthier consumption choices.
- The legislation also aims to boost the fitness-and-exercise industry by exempting vintage household appliances like color TVs, video recorders, record players, and audio recorders from tax, improving accessibility of these essential consumer goods.
- With the Ministry of Finance sharing data on tax exemptions, businesses in the nutrition sector, such as beverage manufacturers, will be under scrutiny to ensure these savings are passed on to consumers, promoting a healthier and financially savvy population.
