With Tax Surplus, Taiwan to Distribute Cash Aid of IDR 5.3 Million per Citizen

TAIPEI. Taiwanese citizens will soon receive a cash subsidy of 10,000 New Taiwan dollars (around IDR 5.3 million) per person. The policy was introduced after the government recorded a significant tax revenue surplus for the fiscal year 2024.

The decision came alongside the legislature’s approval to raise the budget ceiling. The opposition party Kuomintang (KMT) had previously proposed increasing the ceiling from 410 billion to 545 billion New Taiwan dollars (around IDR 243 trillion). The additional funds cover allocations for defense, industry and employment, social assistance, as well as cash distribution to the public.

According to data from the Ministry of Finance, Taiwan’s tax revenue in 2024 reached 3.7619 trillion New Taiwan dollars (around IDR 2.3 quadrillion). This marked a record high, exceeding the initial projection by 528.3 billion New Taiwan dollars (around IDR 283 trillion).

This surplus became the basis for the government’s approval of direct cash assistance. Disbursement is expected to begin as early as October 2025, once administrative procedures are completed.

The initial plan suggested that wealthy families would not be eligible for the aid. However, the idea was rejected by legislators.

They argued that all segments of society should benefit, especially since many households are still affected by typhoons, floods, and the impact of U.S. import tariff hikes. “Everyone deserves the assistance,” wrote the Taipei Times (Aug 15), as cited by kompas.com.

Even so, the government has not yet confirmed whether foreign residents with permanent residency permits will also be eligible.

Initially Rejected by the Government

Interestingly, the IDR 5.3 million cash aid per person was initially opposed by the government, due to concerns that the state budget could be burdened with debt.

“Higher-than-expected tax revenues do not necessarily mean that public finances are in good shape,” said Deputy Minister of Finance for Political Affairs, Juan Ching-hua, quoted by Focus Taiwan (Mar 24).

He reminded that between 2012–2023, Taiwan only recorded a budget surplus three times, while deficits occurred nearly every other year.

However, after debate, the government shifted its stance and approved the cash subsidy scheme as part of the expanded budget ceiling.

In addition to cash assistance, the extra budget will also be directed to strengthen strategic sectors. Among them are 150 billion New Taiwan dollars (IDR 80.5 trillion) for national defense, 93 billion (IDR 49.9 trillion) for industry and employment, and 67 billion (IDR 35.9 trillion) for social assistance.

The cabinet also allocated additional funds for state-owned utility Taipower to strengthen the grid and expand underground cabling. (KEN)