TAIPEI – New-car sales rebounded sharply in mid-January in Taiwan, reversing a downward spiral that lasted nearly three years.

Dealers credit a revision to Taiwan’s Commodity Tax Act for driving the sales gain.

Demand during the first 10 days of January fell more than 50% from year-ago levels. But the 2-day period of Jan. 19-20 saw the licensing of more than 6,000 new cars, pushing sales for the first 20 days of the month to 12,377 units.

Deliveries of imported new cars during the period were 3,479 units, an increase of 58.0% from December and 44.4% from year-ago.

Under the tax revision that took effect Jan. 19, buyers of new sedans below 2.0L in engine displacement, pickup trucks and vans are entitled to an excise tax reduction of NT$30,000 ($895) for each vehicle purchased.