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Transport fuel exemption bill sparks controversy


The China Post news staff
Wednesday, July 16, 2008


    

TAIPEI, Taiwan -- The legislature's proposed bill that exempts freight transport operators from payi

ng fuel surcharges and license tax sparked a controversy among the public.

Yesterday, a draft amendment to the Public Transport Development Bill was approved in the Legislative Yuan pending the third reading although the bill drew widespread criticism for violating the principles of fairness and justice.

Cheng Jen-hung, the Consumers' Foundation president, accused the move of benefiting only specific industries while sacrificing the interests of the general taxpayers.

"It makes no sense to say the regulation would stimulate the sluggish economy," Cheng said. "The loss of the tax revenues will be shifted to the consumers anyway," he added.

Another legislator Yeh Yi-jin from the opposition Democratic Progressive Party, who was also against the bill, said that the bill was unfair on grounds that if it is passed, commercial businesses will all not be required to pay surcharges and license tax while private vehicle owners will.

Ye suggested fuel surcharges to be included in oil prices as are in Japan and South Korea, where the surcharges and taxes such as license tax are added to fuel prices, as opposed to Taiwan, where these charges are levied separately at present.

On the other hand, Mao Chi-kuo, the minister of Transportation and Communications, expressed his stance for including the fuel surcharges in energy taxes instead, as the ministry already submitted the proposal to the newly established Tax Reform Commission under the Ministry of Finance.

The legislature is expected to complete the third reading of the draft amendment to the Public Transport Development Bill by this Friday, when the parliamentary session will close.


      








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