Taiwan Economic Stimulus Package
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Taiwan economic stimulus package is aimed at stabilizing money market, encourage consumer spending, and stimulate industrial growth in general and infrastructure development in particular. This Taiwanese economy stimulus package amounting to US $5.6 billion was declared by Chen Tian Jy, chairman of Council for Economic Planning and Development, in September 2008.
This economic stimulus package of Taiwan is worth Taiwanese dollars (Taiwan $) 180 billion or US $5.6 billion. This economic stimulus package for Taiwan is expected to help Taiwan achieve a growth of approximately 4.3 percent for domestic economy for this current year and revive their ailing stock market.
President Ma Ying Jeou after assuming office in May 2008 has made concerted efforts in providing financial incentives for business, increase exports, and introduce tax breaks and this particular economic stimulus package to Taiwan is an integral part of it. Economic stimulus package in Taiwan entails an expenditure of 58.3 billion Taiwanese dollars in infrastructure development, 20.5 billion Taiwanese dollars as financial incentive for small and medium scale businesses, 37.5 billion Taiwanese dollars towards tax holidays for new investments and 13.5 billion Taiwanese dollars as subsidies for low income households.
After stabilization of its economy, Taiwanese economic stimulus package has targeted streamlining exports, which is an important component of national revenue. To boost shipments to new overseas markets like Russia, Brazil and Middle East, this Taiwan economic stimulus package has allotted Taiwanese dollars 1.5 billion for exports. Exports from Taiwan are expected to grow by 10 percent towards later phase of this package. An aggregate growth of 4.3 percent has been projected for Taiwanese economy in this current year as compared to 5.7 percent in lat year.
Taiwan economic stimulus package has also set aside 1.81 billion Taiwanese dollars. This amount would be provided in form of interest subsidies and its beneficiaries would be home buyers. This package is part of a preferential mortgage program, which is worth 200 billion Taiwanese dollars.
As part of this Taiwan economic stimulus package 37.5 billion Taiwanese dollars would be provided as five year tax breaks. This benefit would be provided on investments made by technical service and manufacturing companies. It would last till end of 2009.
