TAIPEI (TVBS News) — Taiwan's legislators convened at the Legislative Yuan's (立法院) Finance Committee on Monday (March 24) to evaluate a proposed amendment to the Budget Act (預算法) that would formalize tax rebates to citizens. During the session, Accounting and Statistics Minister Chen Shu-tzu (陳淑姿) cautioned that such a policy could hamper the government's ability to respond effectively during crises.
Chen, who presented her assessment to the committee, expressed concern about the government's ability to address major disasters or health emergencies if surplus tax revenues were earmarked for predetermined purposes. The proposal, championed by Kuomintang (KMT, 國民黨) legislators Wang Hung-wei (王鴻薇) and Lai Shyh-bao (賴士葆), would amend Article 81-1 of the Budget Act to prioritize direct cash distributions to citizens when tax collections reach 120% of projected estimates or surpass NT$300 billion (around US$9.1 billion).
KMT legislator Lin Te-fu (林德福) offered an alternative approach, recommending that surplus tax revenues first be directed toward reducing national debt and enhancing social safety nets. His proposal emphasized expanding assistance for disadvantaged populations and bolstering critical social insurance programs, including labor insurance, civil servant pensions, national pensions, and the national health insurance system.
According to Lai, the proposed legislation will now enter a procedural review phase. He anticipated that preliminary evaluations would be completed and the bill returned to the committee within a two-week timeframe for further consideration.
The Directorate-General of Budget, Accounting and Statistics emphasized that surplus tax revenues typically result from forecasting inaccuracies rather than systematic patterns. Analysis of the past five years revealed that central government tax collections surpassed projections in four annual cycles, with 2020 standing as the sole exception when corporate and goods tax revenues declined unexpectedly.
The Ministry of Finance (MOF, 財政部) recommended that when tax collections exceed forecasts, the government should focus on reducing national debt or addressing significant policy priorities. The ministry stressed the importance of fiscal responsibility and thoughtful planning by government agencies when managing unexpected revenue surpluses.
