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Vehicle License Tax Act for the disabled to be amended

TAIPEI, Taiwan -- The Executive Yuan announced yesterday the passage of a draft to amend certain articles of the Vehicle License Tax Act that pertains specifically to the families of persons with disabilities.

Currently a number of individuals have found loopholes in the Act and have since falsified the identities of people with disabilities in order to purchase expensive luxury cars such as Mercedes-Benz, BMW and Lexus free of license tax.

Following an investigation report issued by the Control Yuan earlier this year, the numbers of luxury vehicles purchased by persons with disabilities has reached above 620 thousand units, with tax-free capital as high as NT$6.58 billion. Among these, 26 thousand units are imported vehicles with over 3000 cubic centimeter (CC) engines.

According to the current Act, individuals in possession of a Disability Card and a driver's license are given a license tax exemption on one of their vehicles. Should individuals with physical disabilities be restricted from driving, the exemption is given to one vehicle in the house, with no limitation on the identity of the exemption vehicle applicant, engine volume and horse power.

Control Yuan monitors were quoted as saying “The good intentions of the government to take care of the disadvantaged is suspected of being abused,” and have requested government agencies such as the Ministry of Finance and the Ministry of Transportation and Communications improve the situation.

The amendment seeks to limit license tax exemptions to the disabled alone and the spouse or a residing relative up to the second consanguinity, limiting the number of exempted vehicles per household down to one. The amendment will only grant an exemption to a vehicle proven to be for the use or benefit of a person with a disability.

The amendment also limits the engine of the vehicle to 2400cc, as well as the maximum horsepower of the exemption vehicle to 262. Any vehicles exceeding official standards shall not be granted the license tax exemption.

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