The terms approved by the Finance Committee of the Legislative Yuan are more generous than the original proposal worked out by the Executive Yuan (Cabinet).

The Cabinet first proposed the tax cuts for only buyers of sedans before the end of the year in a bid to stimulate the sluggish automobile market.

But legislators on the panel added pickup trucks, vans and motorcycles to the tax rebate list in order to alleviate the financial burden of the working class.

When ratified by the plenary session of the Legislative Yuan, all buyers of new sedans under 2000cc, pickup trucks, and vans will be entitled to an excise tax discount of NT$30,000 for each vehicles.

Buyers of new motorcycles or scooters will be eligible for a discount of NT$3,000 in the commodity tax.

Finance Minister Lee Shu-der estimated the sweeter terms adopted by the lawmakers will cost the national coffers a reduction of NT$9 billion in tax revenues this year

But the tax rebate measure will help revive the development of local industry of auto and auto parts as well as motorcycles so that a lot of jobs will be secured.

The country's auto industry has generated annual production revenues of between NT$400 billion and NT$500 billion per year. But the industry has contracted for three consecutive years, he said.

Separate statistics show that only 229,495 license plates for new cars were issued in 2008 for a sharp reduction of 30 percent from the previous year and hitting the lowest level in more than two decades.

Sales of sedans hit 452,130 units in 2005, but decreased to 283,008 units in 2007.

Auto manufacturers and importers as well as motorcycle suppliers welcomed the decision of the lawmakers.

But they urged the parliament to take swift action to complete the third and final reading to pass the proposal into law so that customers can place order and complete transaction as early as possible.

The Legislative Yuan is scheduled to end its current session next Tuesday.

Auto suppliers are concerned that potential car buyers will further delay their purchases if the lawmakers fail to complete the legislative procedure before then.

Lawmakers of various parties said they will step up coordination to complete the revisions of the new rules before taking the winter vacation.