The Executive Yuan has approved revisions of the Commodity Tax Act and Vehicle License Tax Act to boost the incentive for people to buy electric vehicles (EVs) and support the EV industry by offering a three-year commodity tax and vehicle license tax exemption for such vehicles. The Ministry of Finance (MOF) points out that EVs already enjoy a 50% commodity tax reduction. The Commodity Tax Act revision will boost the cut to 100% for three years in order to further stimulate the development of green industries and promote the use of EVs that rely completely on batteries for their power, as well as to encourage businesses to become involved in the high-efficiency, low-pollution EV industry or to bring in related vehicle models. The tax exemption will apply to domestically produced and imported EVs alike. The revision of the Vehicle License Tax Act will authorize local governments to themselves decide on granting the license tax exemption for EVs. The period of exemption will be three years. Also, since the Commodity Tax Act and Vehicle License Tax Act currently base tax calculation only on total cylinder displacement volume, and although the MOF has formulated a “Table of Electric Car Horsepower and Cylinder Displacement Equivalence,” the revised laws add a license tax rate schedule for EVs so as to provide a clear legal foundation for tax collection based on horsepower.