Transportation is an enabler of the national economy, underpinning all industries. As Taiwan undergoes major economic transformation and embraces greater diversity, it becomes increasingly urgent and essential for Taiwan’s transportation and logistics economies to adapt accordingly and take the lead in enabling broader economic progress.

The mobility landscape is undergoing rapid transformation, driven by technological advancements, changing consumer expectations, and the growing need for safer, more efficient, and environmentally sustainable systems. Outdated regulatory structures hinder the adoption of smarter mobility solutions. Legal constraints, rigid service classifications, and fragmented operations continue to limit progress, particularly in the taxi and commercial vehicle sectors. With the right policy framework, however, Taiwan can lead in digital mobility, set new benchmarks for airport transportation services, and accelerate its goals for commercial electric vehicle adoption.

The Committee urges the government to adopt a cooperative, future-oriented approach that combines regulatory clarity with necessary flexibility, supports sustainable growth, and strengthens Taiwan’s competitive-ness in the global mobility landscape.

Suggestion 1: Fortify transportation policy through technology to support future mobility needs.

Taiwan’s road transportation model requires an injection of innovation and new ideas to enhance safety, efficiency, and long-term sustainability. While traditional systems have centered heavily around conventional vehicles and human driver-based models, the future of mobility increasingly depends on technology. Advances in artificial intelligence are accelerating the modernization of transportation operations and offer powerful tools for addressing systemic challenges. Leveraging such technologies can position mobility as a driver of economic growth, improved road safety, and environmental responsibility.

The Highway Act and other existing legal frameworks present barriers to innovation. The pace of change in the transportation sector has far outstripped the scope of these laws, which were developed under circumstances that no longer bear resemblance to current technological and operational realities.

The fragmented structure of the transportation sector, particularly within the taxi industry, creates additional challenges for achieving efficiency, fairness, and safety through digital solutions. The dual regulatory mechanism governing both taxi fleets and taxi companies has resulted in outdated and restrictive service classifications and overlapping controls, limiting efforts to improve infrastructure use, expand access, and raise service standards.

The Committee proposes a technology-centric, cooperative framework for government consideration to modernize the regulatory landscape. This framework aims to streamline outdated service classifications, reduce administrative burdens, and foster a more dynamic and competitive taxi industry. The Committee outlines the following suggestions:

1. Modernize transportation regulations and allow digital solutions. In a world increasingly driven by platforms and technology, simplifying outdated classifications (such as those under Article 34, paragraph 1 of the Highway Act) and integrating digital solutions, including e-hailing services and autonomous vehicles, will help build a more flexible and adaptive regulatory framework. This approach would promote a more competitive and innovative taxi industry, better aligned with current consumer expectations, and capable of addressing the sector’s persistent challenges.
2. Expand digital mobility solutions and enhance operational flexibility. Flexibility in pricing and operational policies should be introduced to better align with consumer demand and market dynamics. This includes easing restrictions such as license plate caps under Item 2 of the “Regulations Governing the Issuance of New Taxi License Plates” by local governments and regularly publishing plate usage data. In addition, the Committee recommends decoupling fee structures, permitting surcharges, and introducing greater pricing flexibility as outlined in Article 11-1 of the “Regulations Governing the Management of Automobile Transportation Businesses.” Such adjustments would allow the transportation sector to respond more effectively to market conditions, foster innovation, and deliver greater benefits to both businesses and consumers.
3. Redefine fleet structure. The current definition and responsibilities of taxi fleets (outlined in Article 91, paragraph 3 of the “Regulations Governing the Management of Automobile Transportation Businesses” and Articles 12–20 of the “Regulations Governing the Approval of Applications for Operation of Taxi Passenger Service Businesses”) should be revised to reflect the broader range of service models present in today’s market. The Committee recommends recognizing non-traditional fleets and e-hailing platforms that leverage digital tools and offer varying service structures. Updating these definitions will introduce greater regulatory flexibility and encourage innovation across the industry.
4. Facilitate seamless operations across cities. To improve the efficiency of passenger transportation services and respond to the growing demand for cross-city mobility, the government should modernize regulations to remove territorial restrictions and enhance collaboration between local and central governments to better serve the public with consistent services across regions.

Suggestion 2: Optimize airport taxi services to enhance Taiwan’s global competitiveness and visitor experience.

Taiwan’s international airports have made significant progress in upgrading infrastructure and enhancing the passenger experience, earning growing recognition from travelers. However, one of the first obstacles visitors often encounter is obtaining timely and efficient ground transportation. A queue-based taxi system, while serviceable, frequently results in extended wait times that are particularly challenging in Taiwan’s hot and humid climate, creating a less-than-ideal first impression for arriving passengers. As Taiwan boosts its tourism appeal and prepares for a growing number of inbound visitors, modernizing airport taxi services should be a strategic priority.

The Committee sees a clear opportunity to improve the efficiency, capacity, and user experience of airport taxi services by transitioning to a more open and flexible market structure. The current system, which limits service to a fixed number of designated taxis operating under a traditional dispatch model, provides regulatory oversight but restricts competition, innovation, and adaptability.

International airports such as Singapore Changi, London Heathrow, and Tokyo Narita employ more dynamic systems that combine traditional taxis, pre-booked rides, and app-based services. These models use real-time data, ride-matching technology, and digital payment integration to enhance service delivery and reduce passenger wait times. Taiwan’s international airports would benefit from adopting a similar approach, allowing for greater service diversity while upholding safety, reliability, and service quality standards.

An open-market approach that includes both traditional taxis and modern mobility services would enhance accessibility for travelers while fostering greater industry collaboration. Allowing a broader range of service providers would help introduce best practices in fleet management, customer service, and digital booking efficiency. Moreover, such a framework could support partnerships for data-sharing on passenger flow, enabling better traffic management and reducing congestion around airport terminals.

A modernized airport taxi system presents an opportunity to accelerate Taiwan’s transition toward sustainable transportation. By encouraging competition and investment, the government can set incentives for the adoption of electric vehicles (EVs) within airport taxi fleets. Global airports, such as those in Amsterdam and Los Angeles, have introduced policies requiring or incentivizing EV adoption among commercial transport providers, reducing emissions while enhancing the overall passenger experience. Taiwan’s ongoing efforts to liberalize its transportation sector present opportunities to align with broader sustainability goals, such as encouraging EVs in airport taxi fleets.

To achieve these improvements, the Committee recommends that the government:

• Transition to an open-market framework for airport taxis, allowing multiple service providers to operate under a regulated but competitive model that incorporates both traditional taxis and e-hailing platforms.
• Leverage technology to improve service efficiency, integrating digital pre-booking, app-based ride-matching, and real-time data monitoring to reduce waiting times and enhance passenger convenience.
• Facilitate partnerships between operators and government agencies to enable data-sharing on travel patterns, demand forecasting, and traffic flow management, improving overall airport transportation planning.
• Ensure an inclusive regulatory process, engaging industry stakeholders, including airport corporations, taxi companies, mobility service providers, and consumer groups, to create a balanced policy framework that benefits all parties.

Suggestion 3: Accelerate commercial electric vehicle adoption through incentives and regulatory reform.

1. Expand the range of U.S.-specification electric vehicles eligible for import to enhance market diversity. Accelerating vehicle electrification is a central strategy supporting Taiwan’s 2050 net-zero carbon emission goal. Commercial vehicles, due to their high average mileage, play a particularly important role in managing transportation-related emissions. Mature electric commercial vehicle models are already available in the U.S. market, and expanding the range of U.S.-specification electric vehicles (U.S.-spec EVs) eligible for import would facilitate their entry into Taiwan. Doing so would help accelerate the electrification of the commercial fleet and increase market diversity.
   Under current regulations, U.S.-spec vehicles imported into Taiwan are subject to the “U.S. Spec Vehicle Application for Small Volume Vehicle Type Safety Examination Supplementary Regulations,” which currently permits only passenger vehicles (M1 category) to apply. The Committee recommends expanding eligibility to light and heavy-duty vehicles to support electrification goals.
   In addition, we recommend aligning application documentation with U.S. regulations and standards, specifically the Federal Motor Vehicle Safety Standards, to streamline the approval process and avoid inconsistencies arising from the current reliance on European ECE standards for vehicle classification.
2. Implement import tax exemptions for commercial electric vehicles. High import duties on foreign-made EVs remain a barrier to commercial EV adoption. These costs discourage foreign companies operating in Taiwan from electrifying their fleets and slow progress toward decarbonization.
   The Committee recognizes the goal of supporting local manufacturing but notes that current import taxes create unnecessary financial burdens, particularly for commercial vans and trucks where duties can exceed the base vehicle cost. We therefore recommend introducing annual duty exemptions for companies electrifying commercial fleets.
   Specifically, we recommend that the Ministry of Environment (MOENV) establish an annual quota system allowing companies operating in Taiwan with gas-powered commercial vans and trucks to access import duty and tax exemptions when purchasing EVs. While the make and model of imported EVs could remain subject to ministry approval, this mechanism would enable foreign companies to electrify their fleets more affordably by importing a set number of qualifying vehicles each year without incurring high import-related costs, thus supporting carbon reduction goals and encouraging broader EV adoption.
3. Provide targeted subsidies for commercial electric vehicle purchases. Logistics companies in Taiwan rely heavily on diesel-powered commercial vehicles for daily operations. In recent years, various levels of government have introduced incentives to support the industry’s transition to EVs. The Committee commends the MOENV for extending these subsidies through 2026, recognizing this as a positive step toward advancing sustainability goals in Taiwan’s transportation sector. We also greatly appreciate the efforts of Taiwan’s central and local governments to introduce subsidies supporting the adoption of electric commercial vehicles.
   Taiwan currently offers national and local subsidy programs for replacing large diesel commercial vehicles. The national-level subsidy amounts to NT$30,000, while local governments such as Miaoli County, Hsinchu City, and Hsinchu County offer higher subsidies of up to NT$200,000. While these efforts are appreciated, the Committee notes that the national subsidy falls short when compared to regional benchmarks making EV purchases less financially viable for many companies, and is unlikely to drive significant progress in electrifying the commercial vehicle market at scale.
   In Singapore, the Early Turnover Scheme allows for a discount of up to 40% on the prevailing Quota Premium for a Certificate of Entitlement, with the program currently running through December 31, 2025. In addition, the Commercial Vehicle Emissions Scheme provides a rebate of SG$15,000 (approximately NT$366,000) per vehicle. In South Korea, the national government offers a subsidy of KRW$12 million (approximately NT$270,470) toward the purchase of electric commercial vans.
   Meanwhile, Hong Kong’s New Energy Transport Fund provides funding of up to 50% of the vehicle cost and 75% of charging system costs, capped at HK$15 million (approximately NT$63.4 million) per application. Additionally, Hong Kong offers a full exemption on the first registration tax for electric vehicles. These examples demonstrate how stronger incentives drive adoption and progress in neighboring markets.
   The Committee recommends that the MOENV, along with local governments, review the current subsidy framework for commercial electric trucks and vans used by logistics companies in Taiwan. To align with regional standards and encourage broader adoption, the Committee urges the Ministry to raise the national subsidy level to approximately NT$270,470, comparable to the support offered by South Korea.
   The Committee also commends the governments of Miaoli County, Hsinchu City, and Hsinchu County for introducing higher local subsidies independent of the national program. Member companies further recommend that other major municipalities, including Kaohsiung, Taipei, Taichung, Taoyuan, and Tainan, consider adopting similar local incentives to accelerate electrification across Taiwan’s logistics sector.

Suggestion 4: Balance pedestrian safety with the practical needs of urban logistics.

The Committee commends the efforts of governments across Taiwan to develop safer pedestrian networks, particularly in areas with narrow streets. These initiatives are a positive step toward creating a more pedestrian-friendly environment and improving overall road safety.

However, an unintended consequence of the new pedestrian walkway policies is the increased difficulty for commercial logistics vans in completing deliveries on affected streets. With on-street parking no longer permitted, logistics providers face limited options: either briefly stop and risk fines and demerits from traffic enforcement or park up to several hundred meters away and transport large, heavy packages through narrow, congested areas. This not only raises safety concerns for delivery personnel, particularly during high summer temperatures, but also increases the physical strain on workers and may pose long-term health risks.

In 2024, the government introduced strict regulations on traffic fines that, in some cases, led to license suspensions for delivery drivers after multiple infractions, forcing logistics companies to rotate drivers across routes and regions to avoid losing operational capacity. Although the policy was later eased, fines for delivery-related parking violations remain in place, and no updated framework has been introduced to accommodate the challenges of delivering in areas with expanded pedestrian walkways.

Adding multiple pedestrian walkways in close proximity may not reflect actual pedestrian demand and has contributed to a shortage of legal parking options for commercial vehicles. As a result, logistics vans are often forced to park illegally, increasing safety risks and operational challenges, particularly in dense urban areas where space is limited.

The Committee fully supports the creation of safe pedestrian spaces but also emphasizes the need to accommodate essential commercial activities. We believe pedestrian-friendly planning and efficient urban logistics can (and must) coexist. To support e-commerce and business operations, we recommend allowing licensed commercial vans to temporarily park in designated pedestrian zones for up to 15 minutes to complete deliveries. This privilege should be enforced with the help of clear parking guidelines, mandating the use of flashing lights to signal active deliveries and vacating the space promptly after drop-off.