Taiwan’s economy will receive 12 billion in excess of tax revenues in 2023
2023.01.01 06:06
Taiwan’s economy will receive 12 billion in excess of tax revenues in 2023
Budrigannews.com – According to President Tsai Ing-wen’s announcement on Saturday, Taiwan will reinvest an additional T$380 billion (or $12.43 billion) in tax revenue in 2023 in order to assist in safeguarding the nation from shocks to the global economy. This will include providing subsidies for electricity prices.
The export-dependent economy expanded at a rate of 6.45 percent in 2021, the fastest rate since it expanded at 10.25 percent in 2010. However, the COVID-19 turmoil in China, global inflation woes, and the impact of the war in Ukraine are expected to slow growth in 2022 and 2023.
Following a meeting of senior economic officials, Tsai issued a statement from her office stating that the government must prepare for the “more severe challenges” the global economy will face in 2023.
According to the president, the central government will spend the estimated T$380 billion in excess tax revenues in 2022 on things like labor and health insurance subsidies, subsidies for electricity prices, and other spending to deal with the impact of global inflation and international economic challenges.
“Especially the adjustment of the role and layout of the semiconductor industry and the information and communications industry in the global supply chain,” Tsai stated, “will also be reviewed by government departments.”
She added that this will assist in securing Taiwan’s leading position in the global supply chain, sustaining the steady pace of industrial development, and ensuring economic security and stability.
Taiwan is a major producer of semiconductors, which are utilized in everything from automobiles and smartphones to fighter jets. It is also the location of Taiwan Semiconductor Manufacturing Co Ltd (TSMC), which is the largest contract chipmaker in the world.
In December, the central bank of Taiwan decreased its forecast for GDP growth in 2022 from 3.51 percent in September to 2.91 percent.
It predicted a 2.53% increase in GDP for 2023, up from a previous estimate of 2.9%. Comparatively, the economy expanded by 4.01 percent in the third quarter.
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