Extended Subsidies for Replacing Large Old Diesel Vehicles


In response to the economic impact from the COVID-19 pandemic, the EPA has launched relief packages to help owners of large diesel vehicles scrap and replace their vehicles with new ones. The EPA preannounced draft amendments to the Subsidy Regulations for Scrapping and Replacing Large Old Diesel Vehicles on 19 May 2020. The amendments increased the total subsidy by NT$160 million and extended the subsidy application deadline from 10 December 2020 to 10 December 2021. The amendments also extended the grace period for scrapping and purchasing a replacement vehicle to one year. With the amendments, the EPA aims to relieve the financial burden of vehicle owners and stimulate the incentive to phase out old vehicles.

To clarify any possible misunderstandings that could happen while implementing the subsidy regulations, the EPA has revised the definitions of large diesel vehicle emission standard phases. The amendments also include changes to the required documents and baseline dates when vehicle owners apply for subsidies for scrapping and replacing their Phase 1 to Phase 3 heavy-duty diesel trucks. In addition, according to the amendments, when purchasing used or new vehicles, if the price on the receipt is lower than the subsidy, subsidies will be given based on the actual purchase price. The EPA plans to directly accept vehicle owners’ applications for subsidies beginning 2021 to streamline the application process.

Excerpt from Environmental Policy Monthly, 23 (6)

Environmental Protection Administration, R.O.C.(Taiwan)
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