Annual tax surplus to be prioritized for debt reduction: MOF

Taipei, Feb. 12 (CNA) The Ministry of Finance (MOF) said Wednesday that the annual tax surplus will be prioritized for government debt reduction.

In fiscal year 2024, tax collection reached a total of NT$3.7619 trillion (US$114.58 billion), a record high that surpassed expected tax revenue in the 2024 annual budget by NT$528.3 billion, also a record high, the MOF revealed on Tuesday.

Lawmakers from the opposition Kuomintang (KMT) said Wednesday that the money collected from the people should be returned to the people, proposing cash handouts of NT$10,000 for each individual.

Even after such a handout, which would cost a total of NT$230 billion, more than half of the surplus would still be left for the government to utilize, they said.

In response, the MOF said the government will prioritize reducing debt and increasing debt payments, to ensure financial resilience and discipline.

The remaining surplus after debt reduction will be added to the annual surplus and be used as a source of future financing, the ministry said.

The Legislature Finance Committee passed a resolution in November 2024 stipulating that at least 5 percent of the tax collection surplus of the central government will be used to increase debt repayment.

Meanwhile, Cabinet spokesperson Michelle Lee (李慧芝) said the fiscal year tax surplus still needs to be confirmed by the National Audit Office's General Financial Statements.

The priority for the Legislature and Executive Yuan at the moment should be the 2025 budget plan, which is still at an impasse between the ruling and opposition parties, she added.

Premier Cho Jung-tai (卓榮泰) will continue to communicate with Legislative Speaker Han Kuo-yu (韓國瑜) to find a solution, Lee said.

The NT$528.3 billion earned in taxes in excess of the annual budget resulted from increases in securities transaction tax, individual income tax, business tax and business income tax.

In terms of government level, the central government collected NT$375.7 billion more taxes than its annual budget, while local governments collected a surplus of NT$80.2 billion, both the second-highest on record.