Taiwan renews tax exemption on some grains, soy

Taiwan will renew its exemption of wheat, barley, corn and soybeans imports from a 5 percent sales tax for another year, starting on Tuesday, to help businesses in the global downturn, the finance ministry said. Taiwan's companies have also been hurting due to a weakening Taiwan dollar that is making imports expensive and sluggish domestic consumption.
The exemption will now last through March 9 next year. Taiwan does not produce wheat, barley, corn and soybeans. The tax exemption was put in place in March last year during a surge in global commodities prices and although these have since dropped, companies had been hit by dismal consumer spending since the credit crisis escalated late last year.
Taiwan's economy slipped into recession after posting a record contraction in the fourth quarter last year, with a slump in exports and weak domestic consumption pushing the jobless ratee to a record high in January.