Taiwan says free economic pilot zones will draw $2.5b investment

TAIPEI (REUTERS) - Taiwan's Finance Ministry said tax benefits in the free economic pilot zones are expected to attract NT$60 billion (S$2.5 billion) private investment and create close to 3,000 jobs.

The free economic pilot zones, situated at six harbours and one international airport on the island, have begun operation since August and are aiming to accelerate the pace of economic liberalisation of the export-led economy and develop a high-level service sector.

The six major benefits related to patent technology, headquarter operation, capital investment, hiring of foreign experts, research and development, and international logistics, will reduce tax collection by NT$965 million, according to a ministry report late on Tuesday evening.

However, the tax income from the expected investment will increase NT$851 million, the report said.