Everyone to get NT$3,600 bonus

The plan received highly positive responses from both the business community and the public as it imposes on restrictions on the status of the recipients regardless of income level.

Liu told a news conference that the program is expected to raise the country’s gross domestic product (GDP) growth by 0.64 percentage point for 2009 if all the coupons are used for shopping.

Under the program, each citizen holding the nation’s ID card will get NT$3,600 in coupons that will be valid until the end of 2009, to purchase goods, Liu said.

Wealthy citizens can opt to donate the coupons to charity organizations and get a tax deduction, he said.

The Cabinet led by Liu decided not to exclude the rich from the program because it is not intended as a kind of social assistance.

“The policy is aimed at stimulating consumption, a measure based on economic consideration,” Liu said.

He said the Cabinet hopes the program could be implemented as early as possible, preferably before the beginning of the Chinese New Year holidays in late January.

Distributing the consumption vouchers is one of the economic and financial avenues to help the people cope with the global economic downturn, he said.

The Legislative Yuan, which is dominated by the ruling Kuomintang, has agreed to ratify the special bill and budget in time.

Taiwan’s GDP growth reached 5.72 percent in 2007 and the figure is expected to slow to between 3.5 percent and 4.8 percent this year due to the global economic turmoil.

An increasing number of economists and analysts now predict the GDP expansion will slow down further to under 2 percent in 2009.

Distribution channel

The coupons will be issued to citizens through the departments of domicile affairs at local administrative offices, according to Chen Tain-jy, chairman of the Council for Economic Planning and Development.

The vouchers can be used in any retailing outlets, restaurants or any commercial facilities with business registration certificates.

Providers of products and services may deposit the vouchers they received from customers directly into their bank accounts after placing corporate or store chops on the coupons.

Consumers, however, will not be able to use the coupons at the traditional markets, eateries or street-side vending stalls because they usually do not have the business registration certificates issued by government agencies, Chen said.

No change will be given to shoppers who do not fully use the amount denominated on the coupons because the key purpose of the vouchers is to encourage spending, he said.

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