Hualien county denied ability to impose carbon dioxide tax

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HAULIEN, Taiwan — The Ministry of Finance (MOF) turned down an application filed by Hualien County in eastern Taiwan that would impose a tax on carbon dioxide emissions.

The MOF made the decision during a screening meeting attended by representatives from the Ministry of Economic Affairs (MOEA), the Directorate General of Budget, Accounting and Statistics, as well as the MOF.

At the meeting, MOEA representatives said that if the Hualien county government imposes the tax, then Taiwan Cement Corp. and Asia Cement Corp. will bear the brunt of the imposition. As a result, cement prices of the two firms, which together supply 75 percent of national demand for cement products, will be forced to increase NT$1.9 per bag. The price increase would then be shouldered by nationals, making such a tax no longer a local tax.

The representatives continued that the carbon dioxide tax should be regarded as a national tax, as it involves issues that should be negotiated among countries.

Furthermore, the government will soon impose an energy tax, which will cover the tax on carbon dioxide emissions.

Based on the aforementioned arguments, the MOF finally decided to reject the carbon dioxide tax proposal filed by Hualien County.