Since launch of electronic toll collection of flat-rate toll station on Taiwan's freeways on February 2006, the utilization has increased gradually because of the benefit of paying toll without fully stopping the car. However, as the users have to buy the OBU (on board unit) and there is no discounted toll rate for ETC users, the utilization has reached a stagnant point after a while.

To increase ETC utilization, Freeway Bureau mandated the BOT Operator Far Eastern Electronic Toll Collection Company (FETC) to submit a total solution plan: eTags are provided to freeway users free of charge; the current OBU users are entitled to get free eTags besides receiving refunds for their OBUs.

The eTag is a new electronic toll collecting technology, using the ISO 18000-6C international standard which has been gradually used in electronic toll collecting since 2008.