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Taiwan Cabinet to Bolster Drug Resilience; MOEA Proposes 25% Tax Credit for Essential MedicineMar 06, 2026

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