Tainan approves one-year waiver of two factory fees for 2,750 businesses

Tainan has approved a one-year break from two fees for 2,750 regulated and designated factories, giving manufacturers relief as international pressures squeeze their finances.

Mayor Huang Wei-che said the city would waive both the factory guidance fee and the operating management fee for the current year. He pointed to U.S. tariffs, exchange-rate volatility and the Iran-Israel war, along with rising raw-material prices, uncertain orders and mounting export pressure.

The policy targets factories moving through the process of legalization. Huang said the city has spent years helping unregistered factories become legal and operate sustainably, but many small and medium-sized manufacturers now face tighter cash flow while still paying for fire-safety, environmental and land-use improvements.

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The city government will continue helping operators move toward legalization and sustainable operations.

Chen Shui-ping, chairman of the Tainan Designated Factory Development Association, said businesses had reported rising material and labor costs as international conditions and market volatility continued to weigh on them. He described the fee reduction as concrete assistance during the legalization process.

The city also offers up to NT$250,000 for fire-safety equipment and land-use planning costs. It has separately set rules for improving roads, drainage and other public facilities around designated factories. Tainan's Economic Development Bureau said fee revenue would continue funding factory management, guidance, improvements and nearby infrastructure. Businesses that have not paid this year's fees will be exempt, while those that already paid will receive a full credit next year.

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The fee reduction is important practical help.