The legislature has cut the commodity tax on new vehicles.
The tax cut, approved Friday, will be in effect for the next five years. It applies to vehicle owners who scrap cars at least six years old or motorcycles that are at least four years old.
To be eligible for the tax cut, vehicle owners will have to buy a new vehicle within six months of scrapping an old one. Car owners will be eligible to save NT$50,000 (US$1,500) in taxes, while motorcycle owners will save NT$4,000 (US$122).