Government boosts preferential land rental package

The Executive Yuan said yesterday it would inject an additional NT$20 billion (US$627.8 million) into a preferential land rental package to encourage domestic businesses to lease land in industrial parks.

Premier Chang Chun-hsiung (張俊雄) said in the Cabinet meeting that the revised package, which first took effect in May 2002, would be available until December.

Under the plan, firms leasing land at industrial parks pay no rent for the first two years, receive a 40 percent discount for the third and fourth years, and a 20 percent discount for the fifth and sixth years. Tenants who wish to buy their land can also convert their rental fees into downpayments.

As at the end of last month, Chang said the package had attracted an investment of more than NT$40 billion with an annual production volume of more than NT$60 billion. It had also created more than 70,000 job opportunities and was an important means of attracting China-based Taiwanese companies back to the country, Chang said.

Chang said the decision to increase the package was intended to encourage Taiwanese businesspeople to invest at home. He said the government hoped to attract an additional NT$100 billion in investment with an annual production volume of NT$120 billion.

This would translate into an additional NT$1.8 billion in tax revenue, Chang said.

"The preferential rental package has encouraged many Taiwanese merchants based in China to return home and invest," said Chen Chao-yi (陳昭義), director-general of the Industrial Development Bureau.