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Taiwan Cabinet to Bolster Drug Resilience; MOEA Proposes 25% Tax Credit for Essential Medicine
2026-05-07

During the 7th meeting of the Healthy Taiwan Committee held at the Presidential Office on March 5, the government unveiled the "National Drug Resilience Readiness Plan (2026-2029)." The initiative focuses on securing a domestic supply of 50 critical medicines to mitigate global supply chain vulnerabilities.

  • Critical Shortages: Deputy Minister of Health and Welfare Lin Ching-yi identified antibiotics and short-acting insulin as the most urgent categories for localization. She noted that international pharmaceutical companies often lack the incentive to produce older, low-cost antibiotics, leaving the global supply "extremely fragile."
  • Tax Incentives: To incentivize domestic production, the Ministry of Economic Affairs (MOEA) is deliberating a 25% investment tax credit under the Act for the Development of Biotech and Pharmaceutical Industry. Director-General Kuo Chao-chung emphasized that while standard R&D credits sit at 15%, the government aims for the higher 25% threshold specifically for "Green Manufacturing" and advanced automated processes.
  • Global Synergy: President Lai Ching-te has also directed agencies to foster international partnerships, particularly with Japan, to ensure generic and active pharmaceutical ingredient (API) manufacturers in Taiwan remain globally competitive.

Resource: 國產藥減稅優惠 經濟部:「生技條例」25%投資抵減優惠

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