The Cabinet decided yesterday to spend NT$30 billion (US$933.9 million) to extend a preferential program for industrial land for two more years in a bid to enhance domestic investment, employment and tax revenue.
The so-called "006688" program gives tenant companies which want to set up shops in industrial zones rent-free status for the first two years, a 40 percent discount off their rent for the third and fourth year and 20 percent discount for the fifth and sixth years.
Given that the plan has been very successful, and to help manufacturers solve land acquisition issues, the government decided to prolong the preferential program for two years, starting from Jan. 1 next year, Cabinet Spokesman Chen Chi-mai (
The plan had been set to expire on Dec. 31 next year.
The extension is expected to help 307 companies to rent 215 hectares of land and buildings in the 15 industrial parks nationwide, generate NT$111.2 billion in investments and NT$136.1 billion in output value over the next two years, according to the Executive Yuan.
The Cabinet estimated the scheme would create employment opportunities for 21,917 people and provide an additional NT$1.9 billion in taxes annually.
The plan was launched in 2001 and as of Nov. 24, 634 companies had rented 381 hectares of land and buildings in the industrial parks, creating NT$244.2 billion in investments and an estimated NT$367 billion in output value in the past three years, Vice Minister of Economic Affairs Steve Chen (
Because of the plan, 44,046 people have been employed and the government has earned an additional NT$5 billion in tax revenues annually, Chen said.
The Cabinet has said the plan helped create an industrial cluster effect as well.
The Nankang Software Park (
Foreign capital accounted for 33 percent of investment in that park, government officials said.