A Study on the Improvement of Industrial Park Development Exaction System

To ensure social equity, exaction of planning gain and development obligation are part of the land use control system. Since the current exaction system has no difference between industrial park and housing community development in Taiwan, the economic contribution of industrial park development is not fairly recognized. In order to improve the local competitiveness, this research aims to identify and evaluate the potential effective ways to adjust the current planning exaction system.
First of all, the current planning gain exaction system is reviewed and possible ways of adjustment are identified and evaluated through case simulation analysis. Evaluation indicators include flexibility, certainty, efficiency and equity.
To reduce the initial cost of industrial investment projects, based on principles of administration cost minimization and implementation risk minimization, more flexibility for development exaction is suggested. Through simulation, it is found that timing flexibility is the most appreciated incentive and it benefits the small and medium enterprises more than large scale enterprises.
To award the contribution of private industrial park development, given the existing taxation system, it is suggested the central government can make contribution by allowing the investors to deduct their exaction from revenue income tax. By so doing, the financial burden of industrial park development can be reduced on the one hand, and income of local government will not affected on the other hand.
Facing to the increasing economic competition, and the increasing difficulty of government development of industrial parks, to ensure the adequate supply of industrial land use for use at appropriate price, incentives are suggested in this research through more flexibility of development exaction. Yet, more importantly, it is suggested that the current land use control and review system should be improved to reduce the timing uncertainty of industrial park development.