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

TAIPEI — Taiwan plans to give cash payouts of nearly $200 to every citizen this year, Premier Su Tseng-chang announced on Wednesday, saying the island’s financial progress will likely be shared by everybody.

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

Whereas financial progress is anticipated to gradual in 2022 and 2023, the federal government has made plans to plough an additional T$380 billion ($12.4 billion) in tax income from final 12 months again into the financial system to assist defend the island from world financial shocks, together with subsidies for electrical energy costs and labor and medical health insurance.

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

“The fruit of economic achievements will be shared by all citizens, from young to old,” Mr. Su informed reporters, including the potential payout requires approval from parliament, the place the ruling Democratic Progressive Occasion has a majority.

“We wish to give all citizens a New Year blessing after the beginning of the Lunar New Year,” Mr. Su informed reporters, referring to the week-long vacation that begins on Jan. 20.

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

Taiwan is a significant producer of semiconductors used in every part from vehicles and smartphones to fighter jets. Its financial system continued to develop stably through the COVID-19 pandemic in current years helped by robust chip demand for client electronics as extra folks labored from residence.

Taiwan’s central financial institution in December lower 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 2.53%. The financial system grew 4.01% in the third quarter from a 12 months earlier. — Reuters

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