Taipei, March 27, 2008 (CENS)--In order to combat inflationary pressure, the Executive Yuan (the Cabinet) approved the revised "Customs Law" yesterday (March 26), allowing the government agency in charge to flexibly remove tariffs on bulk commodities entirely, rather than the existing practice of 50% flexible cut.

The revision will cover eight bulk commodities, including wheat, flour, feed-use corn, and soybean.

Chang Sheng-ho, vice finance minister, reported that 100% removal of tariffs on bulk commodities will cost the government NT$816 million in annual taxation revenue.

Domestic flour suppliers, though, opposed removal of tariff on imported flour, now at 8.75%, entirely, noting it may pave the way for Japanese suppliers to make major inroads into the Taiwanese market, as Japanese flour makers now can purchase wheat at US$639 per metric ton, compared with US$650-660 for domestic suppliers, thanks to the unified procurement system of Japan and its government`s subsidy.

(by Philip Liu)