3G telecom to enjoy 5 year tax exemptions

November 15, 2004

Executive Yuan Premier Yu Shyi-kun has directed the Ministry of Economic Affairs and the Ministry of Finance to complete revisions to the Statute for Upgrading Industries before the end of the year in order to grant five-year tax exemptions to third-generation (3G) telecommunications operators. It is estimated that by offering these tax breaks government tax revenues will only fall short NTD 545 million. This is can be achieved because of the 3G sectors will stimulate increased revenues in related sectors, thus offsetting lower tax revenues from 3G companies.

Nomura Research Institute of Japan reports that, as Taiwan grants 3G operating licenses for fifteen years, Taiwan's 3G operators should be able to achieve a market scale of NTD 1.1147 trillion.

Currently, the players working to develop 3G networks in Taiwan include Chunghwa Telecom, Taiwan Cellular, Yuan-Ze Telecom, Asia Pacific Broadband Wireless Communications and VIBO Telecom.

(United Daily News)

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