Chuangxin Electronics Co has become the first local enterprise in Pingtan to get a tax rebate from equipment imports on March 14, Pingtan Times reported.

The company claimed about 100,000 yuan ($16,115) of rebates from a batch of electronic components worth some 700,000 yuan from Dongguan city in Guangdong province.

Chuangxin is a local company in Pingtan with a history of 17 years mainly engaged in electronics component production. It has suffered low-efficient operations due to subpar manufacturing conditions.

“We wanted to introduce new equipment to expand manufacturing long ago. But without the preferential tax policies it would have required a lot of money, which is beyond what we could afford,” said Lin Wenqiang, a manager of the company.

“Chuangxin will continue to expand its scale of production by spending about 12 million yuan on equipment upgrading, with 2 million yuan to be returned,” according to Lin Danjing, an employee.

With the implementation of “Pingtan Closure”, which refers to the establishment of a comprehensive customs supervision and management system covering the entire Pingtan Island, last July, manufacturing enterprises were able to enjoy a variety of tax incentives such as exemptions and rebates that slash their operational costs to a great degree.

The Pingtan subsidiary of TPK holdings, the world's largest touch panel maker from Taiwan, became the scheme’s first beneficiary, receiving 68,000 yuan ($10,887) in tax reimbursements from laboratory equipment it purchased from Dongguan valued at 400,000 yuan.