TAIPEI (Taiwan News) — The Legislative Yuan's Finance Committee on Monday held a preliminary review of proposals advocating for a direct cash disbursement to the public when annual tax revenues exceed a specified threshold.
KMT lawmakers submitted two proposed amendments to the Surplus Act. Committee Chair Lai Shyh-bao (賴士葆) of the KMT suggested that universal cash distribution should be implemented if the actual net tax revenue reaches 120% of the budgeted amount, per CNA.
KMT Legislator Wang Hung-wei (王鴻薇) recommended that if actual tax revenue exceeds the budgeted amount by NT$300 billion (US$9.07 billion), universal cash payments should return the surplus to the public.
DPP Legislator Wu Ping-jui (吳秉叡), a member of the Finance Committee, said that the DPP legislative caucus opposes the amendment because it is not the correct approach and raises constitutional concerns. Wu emphasized that the Legislative Yuan only has the authority to propose budgetary bills, and the DPP caucus cannot accept packaging a budget proposal as a legislative amendment.
KMT lawmaker Lo Ming-tsai (羅明才) argued that the public expects to share economic gains through universal cash distribution. He said that people at the grassroots level eagerly anticipate the NT$10,000 cash payout.
Lo said similar cases exist in Singapore, Macau, Hong Kong, Japan, and the US. Lo suggested making distributions a regular practice.
Directorate-General of Budget, Accounting and Statistics Minister Chen Shu-tzu (陳淑姿) expressed concerns that adding such provisions to the Surplus Act would impose legal restrictions, reducing the government's policy flexibility. Chen also pointed out that budget surpluses are not guaranteed every year.
Juan Ching-hua (阮清華), a political deputy minister at the Ministry of Finance, added that while last year’s tax revenue was strong, it does not necessarily indicate overall fiscal health. From 2012 to 2023, only three years had surpluses, while most years ran deficits.
Juan warned that implementing universal cash distribution without considering fiscal capacity might force the government to take on debt.
Lai said that due to differing opinions between the ruling and opposition parties, as well as the Cabinet, the case should be reserved for further negotiation in a full legislative session. Wu called for a vote, which resulted in a tie: six in favor and six against.
As the committee chair, Lai cast the deciding vote in favor, leading to a final vote of 7-6, allowing the proposals to be sent to a full session of the Legislative Yuan.
Lai clarified that if the actual net tax revenue does not reach 120% of the budgeted amount or exceeds NT$300 billion, the provision will not apply.
The TPP initially planned to propose an amendment but later submitted a separate proposal.
The proposals will undergo a reading in the full session on Friday. The KMT and TPP will push for a second reading and further negotiations.
