Taiwan Collects 24 Trillion KRW in Excess Taxes Last Year
Cash Payment of 460,000 KRW Per Citizen... Returning Surplus to the Public
The Taiwanese government has decided to use a portion of excess tax revenue to provide every citizen with a cash payment of 10,000 New Taiwan Dollars (approximately 460,000 KRW) per person.
Eligible citizens will receive 10,000 New Taiwan Dollars per person. The recipients include not only Taiwanese nationals but also permanent residents, foreign spouses of Taiwanese nationals, and foreigners who have obtained permanent residency. Additionally, newborns born by April next year are also eligible to receive the payment. Photo by Getty Images
On October 24, Taiwanese media outlet United Daily News (UDN) reported, "President Lai Ching-te has promulgated the 'Special Budget for Strengthening National Security Resilience in the Economy, Society, and Livelihood,' and the Executive Yuan has announced detailed payment plans."
According to the report, the Legislative Yuan (National Assembly) passed a special budget bill totaling 236 billion New Taiwan Dollars (about 11.01 trillion KRW) on October 17. The Taiwanese government plans to complete the payments to all citizens by the end of April next year.
10,000 New Taiwan Dollars Per Person... Including Permanent Residents, Foreigners, and Newborns
Eligible individuals will receive 10,000 New Taiwan Dollars each. The recipients include not only Taiwanese nationals but also permanent residents, foreign spouses of Taiwanese citizens, and foreigners who have acquired permanent residency. Additionally, newborns born by April next year are also eligible to receive the payment.
There are five payment methods: ▲Bank transfer after online registration ▲Cash withdrawal at ATM (Automated Teller Machine) ▲Cash pickup at post office counters ▲Direct deposit ▲Batch payment based on a list. Pre-registration will be open for five days starting November 5. ATM cash withdrawals and post office cash pickups will begin on November 17 and November 24, respectively.
The Taiwanese government will provide 10,000 New Taiwan Dollars (approximately 460 USD) in cash to all citizens. Pixabay
The Taiwanese government will use direct deposit for those receiving various pensions and subsidies, such as labor insurance, accident insurance, national pension, or living assistance for people with disabilities and low-income households. For these recipients, the payment will be automatically deposited into their accounts on November 12, without the need for a separate application or registration.
Li Hui-ju, spokesperson for the Executive Yuan, stated, "This cash payment is expected to raise GDP growth by about 0.415 percentage points," and added, "From next year, measures to further boost domestic demand will also be actively pursued." The Ministry of Economic Affairs expects the economic ripple effect of the cash payment to exceed 5%. However, the ministry also noted that if citizens choose to save the money instead of spending it, the actual stimulus effect should be evaluated through future economic indicators.
The Taiwanese retail industry anticipates that this cash payment will have a positive impact on stimulating consumption. In particular, department stores, convenience stores, and the electronics industry expect increased sales of major items such as electronics, clothing, and footwear during the change of seasons. When 6,000 New Taiwan Dollars (about 280,000 KRW) per person was distributed in 2023, Sogo Department Store's performance grew by approximately 21% compared to 2022.
Excess Tax Revenue for Four Consecutive Years... 24 Trillion KRW Collected Above Target Last Year
This cash payment is a response to last year's record-high excess tax collection. Since February, the Legislative Yuan has been pursuing ways to return part of the higher-than-expected tax revenue to citizens. According to the Ministry of Finance, last year's tax revenue reached 3.7619 trillion New Taiwan Dollars (about 175.53 trillion KRW), of which 528.3 billion New Taiwan Dollars (about 24.65 trillion KRW) was collected in excess of the target.
The Ministry of Finance also announced that excess tax revenue has been recorded for four consecutive years since 2021. The cumulative excess tax collected during this period amounts to 1.8707 trillion New Taiwan Dollars (about 87.31 trillion KRW).
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