Recently, the public has often asked if they can apply for a reduction and refund of the commodity tax on new vehicles if they scrap their electric motorcycles and replace them with new gas motorcycles.

The National Taxation Bureau of Kaohsiung, Ministry of Finance, states that according to Article 12-5 of the Commodity Tax Act, to be eligible for a reduction and refund of the commodity tax, the scrapped or exported motorcycle must be 150cc cylinder volume or below （hereinafter referred to as used motorcycle） which had left the factory at least 4 years ago, and a new motorcycle has been purchased and registered within 6 months before or after the scrapping or export date. The main purpose of this tax concession is to encourage the public to replace their old vehicles with new ones and to reduce the number of old vehicles, so as to achieve the policy objective of "Energy Saving and Carbon Reduction." However, if the public scrap old electric motorcycles, which are more "energy-saving and carbon-reducing," and replace them with more energy-consuming and polluting gas motorcycles, this is obviously contrary to the legislative intent of Article 12-5 of the Commodity Tax Act. Therefore, it is not applicable to applying for a reduction and refund of the commodity tax concession for the replacement of old motorcycles.

The Bureau further explains that in order to encourage the scrapping or exportation of used motorcycles and their replacement with new gas motorcycles, reducing the environmental pollution caused by used motorcycles, as well as saving energy and reducing carbon emissions, the applicable period for the reduction and refund of the commodity tax on new vehicles has been extended to January 7, 2026. Therefore, if individuals scrap or export a used gas motorcycle, purchase a new gas motorcycle within six months before or after scrapping or exporting and complete the registration of a new license plate, they may present relevant supporting documents to the new motorcycle's dealer, manufacturer, or importer for it to apply for a reduction and refund of the commodity tax on the new gas motorcycle, which is a flat rate reduction of NT$4,000 per motorcycle.

As for the purchase of electric motorcycles powered solely by electric energy with license registration completed, according to Article 12-3 of the Commodity Tax Act, from January 1, 2022 to December 31, 2025, the commodity tax is exempted. Therefore, it is not subject to the provisions on tax refund of the replaced vehicle under Article 12-5 of the Commodity Tax Act. For further information, please call the toll-free service phone number 0800-000321 or go to the Bureau's website（https://www.ntbk.gov.tw） to make inquiries online using the national tax intelligent customer service “National Tax Helper”, and there will be dedicated staff to provide counseling services. 

Providing unit: Sales Tax Division      
Contact person: Ms.Chen              Contact telephone: （07）7256600 ext.7380
Contributor: Ms.Zhan                    Contact telephone:（07）7256600 ext. 7388