TAIPEI (TVBS News) — Taiwan's Legislative Yuan's Finance Committee is set to debate the potential return of surplus tax revenue to the public on Monday (March 10). However, the Executive Yuan argues against institutionalizing cash handouts, stressing that existing laws prioritize debt reduction and building budget surpluses when tax revenues exceed expectations.
Lee Kuo-hsin (李國興), the Executive Yuan's deputy secretary-general, highlighted Taiwan's vulnerability to international economic fluctuations due to its reliance on foreign trade. To enhance revenue projections, the Ministry of Finance has formed a "Tax Revenue Estimation Professional Group."
Chen Shuh-tzu (陳淑姿), the Minister of the Directorate-General of Budget, Accounting, and Statistics (DGBAS, 行政院主計總處), clarified that exceeding budget estimates in tax revenues does not imply a fiscal surplus for the year. She emphasized that the government must first address shortfalls and statutory debt repayments before considering any surplus as available resources. Chen reiterated her opposition to cash handouts.
Deputy Minister of Finance Li Ching-hua (李慶華) noted that the majority of the surplus revenue comes from income taxes, which often have significant reporting delays due to varying submission schedules. He cautioned that setting criteria for cash handouts based solely on budget projections being exceeded by 120% or NT$300 billion could lead to borrowing concerns.
Amid discussions on surplus annual tax revenues, the Kuomintang (國民黨) proposed distributing NT$10,000 to each citizen and introduced a draft special act to share the excess tax revenue with the public.