January 19, 2005
The Executive Yuan approved a two-year extension of the "006688" industrial park land lease incentives in mid-December 2004. This step means these incentives will continue to be offered up to the end of 2006. Officials expect the incentives to encourage an additional 300 enterprises to move into industrial parks, providing an investment boost of
NTD 111.2 billion and creating
NTD 1.9 billion in indirect tax revenues and 21,900 new job opportunities.
The government refers to these incentives as the 006688 Program because they grant land lease exemptions the first two years of the program, while subsequently allowing the recipient to pay just 60% of the lease the next two years and 80% the final two years. This program is open to enterprises wishing to set up in any industrial park developed by the Industrial Development Bureau or a local government and to which the Statute for Upgrading Industries applies.
The program has been rated a tremendous success since its introduction in May 2001. A total of 634 companies had taken advantage of the incentives as of the end of November 2004, leasing land and buildings in industrial parks with a combined area of 381 hectares. These companies consequently invested a total of
NTD 244.2 billion, which supports an annual production value of
NTD 367 billion and has provided 44,046 new jobs. By promoting industrial development and boosting competitiveness, this program provides significant benefits to Taiwan's economy.
With the 006688 Program's original budget of
NTD 60 billion already exhausted, the Executive Yuan has approved an additional allocation of
NTD 30 billion. The budget extension will ensure that this successful program continues to draw enterprises to Taiwan's industrial parks.
(Council for Economic Planning and Development (CEPD))
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