Taiwan to give cash payouts to citizens in ‘New Year blessing’

Premier Su Tseng-chang says ‘fruit of financial achievements will likely be shared by all residents.’

Taiwan has accounced plans to offer money payouts of almost $200 to each citizen this yr [File: I-Hwa Cheng/Bloomberg]

Taiwan plans to offer money payouts of almost $200 to each citizen this yr, Premier Su Tseng-chang has introduced, saying the island’s financial progress will likely be shared by everybody.

The export-reliant financial system, a world tech powerhouse for merchandise together with semiconductor chips, grew 6.45 % in 2021, the quickest charge because it expanded 10.25 % in 2010.

Whereas financial progress is anticipated to sluggish in 2023, the federal government has made plans to plough an additional T$380 billion ($12.4bn) in tax income from final yr again into the financial system to assist defend the island from international financial shocks, together with subsidies for electrical energy costs and labour and medical health insurance.

Su mentioned a complete of T$140 billion, a part of the tax income, can be spent as money payouts and every citizen would get T$6,000 ($195.61).

“The fruit of financial achievements will likely be shared by all residents, from younger to previous,” Su advised reporters on Wednesday, including the potential payout requires approval from parliament, the place the ruling Democratic Progressive Get together has a majority.

“We want to give all residents a New 12 months blessing after the start of the Lunar New 12 months,” Su advised reporters, referring to the week-long vacation that begins on January 20.

He didn't give particulars of how the federal government would ship the payouts.

Taiwan is a serious producer of semiconductors utilized in all the pieces from vehicles and smartphones to fighter jets. Its financial system continued to develop stably throughout the COVID-19 pandemic lately helped by sturdy chip demand for client electronics as extra folks labored from residence.

Taiwan’s central financial institution in December minimize its 2022 estimate for gross home product (GDP) progress to 2.91 % from its earlier forecast of three.51 % in September.

For 2023, it projected GDP would develop by 2.53 %. The financial system grew 4.01 % within the third quarter from a yr earlier.