Prime Minister Su Tseng-chang says that “the fruits of economic achievements will be shared by all citizens.”
Taiwan plans to distribute nearly $200 in cash to every citizen this year, Prime Minister Su Tseng-chang has announced. He says the island’s economic growth will be shared by all.
The export-dependent economy, a global technology powerhouse for products such as semiconductor chips, grew by 6.45 percent in 2021, the highest rate since growing at 10.25 percent in 2010.
While economic growth is expected to slow in 2023, the government has made plans to return last year’s T$380 billion ($12.4 billion) of tax revenue to the economy to help protect the island from global economic shocks, including subsidies for electricity prices and labor and health insurance.
Su said a total of T$140 billion, a portion of the tax revenue, would be spent as cash payouts and each citizen would receive T$6,000 ($195.61).
“The fruit of economic achievements will be shared by all citizens, young and old,” Su told reporters on Wednesday, adding that the potential payout requires approval from parliament, where the ruling Democratic Progressive Party has a majority.
“We want to give a New Year’s blessing to all citizens after the start of the Lunar New Year,” Su told reporters, referring to the week-long holiday starting January 20.
He gave no details on how the government would make the payouts.
Taiwan is a major semiconductor producer used in everything from cars and smartphones to fighter jets. The economy has continued to grow steadily during the COVID-19 pandemic in recent years, aided by strong demand for consumer electronics chips as more people work from home.
Taiwan’s central bank in December cut its estimate for gross domestic product (GDP) growth for 2022 to 2.91 percent from its previous forecast of 3.51 percent in September.
For 2023, it projected GDP to grow at 2.53 percent. The economy grew by 4.01 percent in the third quarter compared to a year earlier.