MOF Exempts Imported Corn from Business Tax the 5th Time

Taipei, Oct. 11, 2012 (CENS)--To stabilize commodity prices, Taiwan's Ministry of Finance (MOF) has exempted imported corn from business tax for six months from Oct. 6, 2012 to April 5, 2013, with estimated tax loss of NT$850 million (US$28.33 million).

MOF officials say this is the fifth tax exemption on imported corn. The first such tax exemption was availed of four bulk grains including wheat, barley, soy bean, and corn for one year, from March 10, 2008 to March 9, 2009. The second exemption was also effective one year on the said four grains from March 10, 2009 to March 9, 2010; while the third was three months from March 10, 2010 to June 9, 2010.

However, the fourth tax exemption was availed of only on corn for six months from April 6, 2012 to Oct. 5, 2012.

The MOF saw a loss of NT$10.3 billion (US$343.33 million) in tax revenues due to the first four business tax exemptions on bulk grains.

The tax exemption on imported corn has suppressed fodder price in Taiwan by NT$0.3 (US$0.01) per kilogram, benefitting those in related industries by some NT$1.1 billion (US$36.67 million) in production cost reduction.