Taiwan opposition pushes NT$20,000 'AI bonus' for all citizens ahead of local elections

Taiwan's main opposition party is pushing to distribute NT$20,000 (about $620) in cash to every citizen, a move aimed at winning over voters ahead of next month's local elections.

According to Taiwanese media including the China Times, the Kuomintang's Central Standing Committee announced Wednesday that its lawmakers plan to pass the KMT's version of a special "AI bonus" bill before Nov. 28.

Chen Yi-hsin, director of the KMT Central Committee's Culture and Communications Commission, said surveys showed voters in lawmakers' constituencies responded very positively to the NT$20,000 bonus proposal.

Chen said the Central Standing Committee urged party lawmakers to ensure the KMT's version of the bonus bill passes the Legislative Yuan before the local elections. If the ruling Democratic Progressive Party votes against it, he added, voters will clearly see "who is blocking the people's demands."

Meanwhile, President Lai Ching-te, who also serves as DPP chairman, urged the party's Central Standing Committee on Wednesday to push for swift passage of a bill providing an NT$10,000 (about $310) bonus.

Taiwan's Ministry of Finance submitted a report to the Executive Yuan on Oct. 8 outlining a plan to distribute NT$10,000 per person as an AI bonus. If the central government's general budget for 2027 passes before Jan. 5 next year, the bonus could be distributed before next year's Lunar New Year.

Sources said this year's local elections are widely seen as a bellwether for the next presidential and legislative elections scheduled for January 2028, with the ruling and opposition parties sparring over the size and timing of the AI bonus ahead of that vote.

Taiwan's government has periodically distributed cash or consumer vouchers to residents to stimulate the economy and encourage spending.

Last October, the government pursued a plan to distribute NT$10,000 in cash per person to all citizens, funded by surplus tax revenue.

The budget proposal was titled the "Special Budget for Strengthening Economic, Social, Livelihood and National Security Resilience in Response to the International Situation."

Eligible recipients included Taiwanese citizens, foreign spouses of Taiwanese nationals and foreigners holding permanent residency.

Distribution methods included pre-registration, bank account transfers, post office counters and ATMs at 15 banks.

At the time, Finance Ministry Political Deputy Minister Juan Ching-hwa cited National Development Council statistics, projecting the cash handout would contribute 0.415 percentage point to GDP growth.

Department stores, convenience stores and electronics retailers in Taiwan expected the payout to give a significant lift to consumer spending.

Sogo department store said its earnings grew about 21 percent compared with 2022 when the government distributed NT$6,000 (about $190) per person to Taiwanese citizens in 2023.

Taiwan's government also distributed NT$6,000 in cash per person in 2023, near the end of the COVID-19 pandemic, as an economic stimulus measure.