The existence of the Hsinchu Science-based Industrial Park creates two impacts, one positive and one negative. The positive impacts may be further divided in two. The first positive impact is the technological advancement and economic prosperity for the entire nation. The second positive impact is localized, economic prosperity and a booming real estate market for the Hsinchu area. The negative impacts include those described above. In considering ways to ease or eliminate these clashes, we need to take into consideration the positive impacts.
For the central government, the positive impact is the increase in revenue brought on by the overall economic growth. For Hsinchu's local government, the negative impact is the increased financial burden. However, the accompanying industrial and commercial growth bring an increase in the real estate appreciation and property taxes. Since the central government has enjoyed many benefits from the park, it should subsidize the local government's efforts to deal with the negative clashes. Community development funds from the park's businesses and an increase in local taxes should simultaneously be adopted.
Theoretically, if the businesses in the park creates more good than evil, then they would have no need to pay for the clashes. If, as pointed out by Hsinchu City officials, the local government is short NT$3 or NT$4 billion as a result of the Hsinchu Science-based Industrial Park, then the increase in local tax revenues is necessarily smaller than the shortage created. Therefore, besides subsidies from the central government, the charge of a "clash" fee is indeed a plausible approach for the local government.
Finally, in collecting any of the above-described fees, the manner must be official and transparent. The local government must evaluate in detail the extent of problems brought on by the new community. How much in fees is needed to cover such problems? Also, determine the amount of acceptable fees by way of public inquiry. In addition, the fee charged must of course be diverted to the public treasury and be applied for its intended purpose to avoid controversies. such as those caused by the "Township Chief Tax."
Fu Chuan-hsun is the deputy executive-secretary of the Taxation and Tariff Commission at the Ministry of Finance.
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