Taiwan Proposes Tax Holiday For Telecoms Industry
The government of Taiwan is proposing a five year tax holiday for the country’s telecommunications industry in order to promote the development of third generation mobile telephone networks, the Taipei Times reported yesterday.
"The Executive Yuan has given its go-ahead to the policy which will allow the nation's five third-generation [3G] service providers to enjoy a five-year tax break," Vice Minister of Finance Gordon Chen informed parliament recently.
Taiwan’s five 3G service providers are planning to invest NT$104.5 billion (US$3.1 billion) before 2005, the vice chairman of the Council for Economic Planning and Development told the Taipei Times, creating nearly 3,000 jobs in the process.
However, there is some disagreement as to how much the five year tax break will cost the government over its lifespan. The finance ministry has estimated that if implemented, the measures would cost between NT$5 billion and NT$18 billion in lost revenues. The Ministry of Transport and Communications, meanwhile, has estimated the cost at between NT1.07 billion and NT$1.33 billion.
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