TAIPEI (Taiwan News) — The Ministry of Finance said Tuesday that national tax revenue fell 2.5% year-on-year to NT$2.87 trillion (US$93.75 billion) in the first nine months of this year.
The ministry cited global stability in trade and manufacturing as a moderating factor for Taiwan’s export-driven economy, per CNA. It said supply chain realignment and early restocking helped limit the impact of tariff shocks and financial volatility this year.
However, the report warned that uncertainties over US–China tensions, questions about the sustainability of the AI boom, and mounting fiscal pressures worldwide could weigh on growth next year.
Despite the global risks, Taiwan’s exports surged to a record NT$5.19 trillion in the third quarter, with imports reaching US$125.9 billion. Output in electronic components jumped 28.5% from a year earlier, driving manufacturing and industrial production up 17.2% and 15.9%, respectively, both all-time highs for a single quarter.
Domestic consumption remained uneven. The ministry said economic caution and weak car demand continued to curb retail activity, with overall sales down 1.8% in the third quarter. Restaurant sales, however, rose 2.1% on summer dining demand.
The unemployment rate averaged 3.35% in the first nine months — the lowest in 25 years — but underemployment showed signs of edging up.
Looking ahead, the ministry forecast steady but uneven growth across sectors in the fourth quarter. It said strong AI adoption and Taiwan’s robust supply chain would sustain export and investment momentum, supporting what it described as “a stable domestic economy with mild external warmth.”
On fiscal performance, tax revenue for the first nine months dropped 2.5%, with corporate income tax down NT$42.6 billion, securities transaction tax down NT$22.3 billion, and land value increment tax plunging 23.7%, the sharpest fall among all categories. The ministry said most major tax sources except individual income tax have declined, meaning collections so far cover less than three-quarters of the annual target.
Surpassing last year’s record and meeting this year’s budget goal will be difficult, the ministry said, pointing to lingering weakness in investment and property markets.
