Taiwan intends to offer cash payouts to all citizens

Key Takeaways:

• Taiwan’s Premier, Su Tseng-chang, has stated that this year, every citizen will receive cash payments totalling close to $200.
• Su asserted that cash payments totalling T$140 billion in tax revenue would be made to each citizen, who would receive T$6,000 ($195.61).
• Semiconductors, used in everything from fighter jets to cars and smartphones, are largely produced in Taiwan.

Premier Su Tseng-chang of Taiwan has announced plans to distribute cash payments totalling nearly $200 to every citizen this year, saying that the island’s economic growth will benefit all residents equally.

The economy, which is heavily dependent on exports and is a global leader in technology for items like semiconductor chips, grew by 6.45 % in 2021, the fastest rate since it increased by 10.25 per cent in 2010.

The government has plans to reinvest an additional T$380 billion ($12.4 billion) in tax revenue from the previous year into the economy to help shield the island from external economic shocks, such as subsidies for electricity prices, labour costs, and health insurance, even though economic growth is anticipated to slow in 2023.

Su claimed that a total of T$140 billion in tax revenue would be distributed as cash payments, with each citizen receiving T$6,000 ($195.61).

Su told reporters on Wednesday that “the fruit of economic achievements will be decided to share by all citizens, from young to old,” adding that the potential payment needs to be approved by parliament, where the ruling Democratic Progressive Party holds a majority.

Su told reporters about the week-long holiday that begins on January 20, “We wish to give a New Year blessing to all citizens after the beginning of the Lunar New Year.”

He did not mention how the government would distribute the payments.

Taiwan is a significant supplier of semiconductors, which are found in everything from fighter jets to cars and smartphones. 

Since more people have been working from home in recent years due to the COVID-19 pandemic, its economy has been steadily expanding. This has been made possible by strong chip demand for consumer electronics.

The gross domestic product (GDP) growth forecast for Taiwan’s central bank for 2022 was reduced from 3.51 per cent in September to 2.91 per cent in December.

It predicted that the GDP would increase by 2.53 per cent in 2023. In the 3rd quarter, compared to a year earlier, the economy expanded by 4.01 per cent.