Taiwan to offer cash payments to citizens during “New Year’s Blessing”

TAIPEI, Jan 4 (Reuters) – Taiwan plans to pay nearly $200 in cash to each citizen this year, Prime Minister Su Tseng-chang announced on Wednesday, saying the island’s economic growth would be shared by all.

The export-dependent economy, a global tech powerhouse for products including semiconductor chips, grew 6.45% in 2021, the fastest rate since growing 10.25% in 2010.

With economic growth expected to slow in 2022 and 2023, the government has planned to pump an additional T$380 billion ($12.4 billion) of last year’s tax revenue back into the economy to help protect the island. global economic shocks, including subsidies. for electricity prices and work and health insurance.

Su said a total of T$140 billion, part of the tax revenue, would be spent in cash and each citizen would receive T$6,000 ($195.61).

“The fruit of economic achievements will be shared by all citizens, from the youngest to the oldest,” Su told reporters, adding that the potential payment requires approval in parliament, where the ruling Democratic Progressive Party has a majority.

“We wish to give all citizens a New Year’s blessing after the start of the Lunar New Year,” Su told reporters, referring to the holiday week that begins Jan. 20.

He did not give details on how the government would make the payments.

Taiwan is a major producer of semiconductors used in everything from cars to smartphones to fighter jets. Its economy has continued to grow steadily during the COVID-19 pandemic in recent years, helped by strong demand for consumer electronics chips as more people work from home.

In December, Taiwan’s central bank lowered its gross domestic product (GDP) growth estimate for 2022 to 2.91% from its previous forecast of 3.51% in September.

For 2023, he predicted that GDP would grow by 2.53%. The economy grew 4.01% in the third quarter from a year earlier.

$1 = 30.6740 Taiwan dollars)

Reporting by Yimou Lee and Jeanny Kao; Edited by Jacqueline Wong

Our standards: The Thomson Reuters Trust Principles.

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