TAIPEI (Taiwan News) — The KMT legislative caucus reaffirmed its opposition to the NT$100 billion (US$3.42 billion) grant for Taipower on Friday, while backing a NT$10,000 per person tax rebate and funding for national security and societal resilience.
KMT caucus whip Fu Kun-chi (傅崐萁) said the party supports budget provisions tied to national security and societal resilience, provided there is accountability for how the funds are used, per CNA. He argued that the NT$1.87 trillion tax surplus accumulated over the past four years gives the government enough fiscal room to issue the rebate and benefit low-income households in particular.
On the Taipower grant, Fu reiterated the KMT would block funding until Premier Cho Jung-tai (卓榮泰) appears before the legislature to explain the government’s stance on freezing utility rates and provide a full review of Taiwan’s energy policy.
KMT Chair Eric Chu (朱立倫) publicly opposed the grant, on Thursday, following reports that he may have been open to compromise in exchange for DPP support on the tax rebate. DPP Legislator Wu Szu-yao (吳思瑤) criticized the proposed rebate, calling it a political maneuver aimed at shielding KMT lawmakers from ongoing recall efforts, per ETtoday.
The Ministry of Economic Affairs urged legislators to approve the Taipower grant, emphasizing the company's role in absorbing NT$600 billion in energy price shocks caused by global conflicts, per ETtoday. The ministry also pointed to the need for funds to repair infrastructure damaged by Typhoon Danas.
The ministry warned against freezing utility rates, saying such decisions should be made by professionals.
KMT insiders told the UDN that the party is supportive of national defense funding, but believes those initiatives should be handled in a separate bill rather than being bundled into the special budget bill. They acknowledged US interest in defense-related provisions and noted internal concerns about being labeled as pro-China if the party opposes them.
A KMT legislator cited recent storm-related damage at a solar power facility in Pingtung County as justification for withholding support for the Taipower grant, while also expressing concern that the DPP may raise utility rates once the bill passes. Business groups have reportedly lobbied the KMT to approve the grant.
Another senior KMT lawmaker told UDN the proposed tax rebate is unlikely to affect recall campaigns meaningfully and warned that support for Taiwan’s industries might require increased funding depending on the outcome of ongoing tariff negotiations.
