Taiwan to cut tariffs on gas, corn, soy beans, wheat, powdered milk

Tariffs on corn, soy beans, wheat, butter, powdered milk used for baking, gasoline, and diesel oil will be reduced over the next three months, in a bid to stabilize consumer prices and lessen the burden on the food and beverage industry, the Cabinet said Sunday.

From Feb. 7 to April 30, the business tax on imported corn, soy beans, and wheat will be removed, Cabinet spokesperson Lo Ping-cheng (羅秉成) told reporters after a meeting on the issue chaired by Premier Su Tseng-chang (蘇貞昌) was concluded.

The tax exemption will alleviate pressure on livestock farmers who use corn and soy beans as animal feed, edible oil manufacturers, and businesses that produce baked goods and noodles, Lo said.

During the same period, the customs duty on butter and powdered milk used for baking will be cut by half, Lo said.

Also over the three-month period, the commodity tax on gasoline and diesel oil will be reduced by NT$1 and NT$0.5 per liter, respectively, to NT$4.83 and NT$2.49 per liter, Lo said.

The Cabinet previously cut the commodity tax on the two products by NT$1 per liter in December.

The natural gas price for households and the price of liquefied petroleum gas in cylinders will remain unchanged until the end of April. In addition, cuts in the commodity tax on cement, customs duty on wheat, and tariffs on imported beef implemented in December will remain in place for an additional month until April 30, Lo said.

In light of recent fluctuations in the supply of eggs, Premier Su has instructed the Council of Agriculture to roll out subsidies for egg farmers, Lo said.

The new measures are being taken following a surge in the price of corn, soy beans, and wheat due to a reduction in global yields caused by climate change and pandemic-related supply chain disruptions, as well as a price increase in crude oil internationally due to tight supply and tensions between Russia and Ukraine, Lo said.

Focus Taiwan

Tags: wheat, Taiwan, tariffs, food, natural gas, butter, soy beans, powdered milk, beverage, corn, prices