November 19, 2008	Wednesday	Ziqa'ad 20, 1429

TAIPEI, Nov 18: Everyone in Taiwan will be given more than US$100 in shopping vouchers in a government bid to boost the economy amid the global credit crisis, the prime minister announced on Tuesday.

Under the scheme, the island's 23 million people regardless of age or wealth will be given 3,600 Taiwan dollars (US$109), Premier Liu Chao-shiuan told reporters.

He added that the programme would cost some 82 billion Taiwan dollars, while those people who donated their coupons would be able to file for tax deductions.

It is expected to be implemented as early as January in time for the Lunar New Year holidays which will begin on Jan 26.

“The programme is aimed at boosting the economy ... and is expected to contribute to a 0.64 per cent increase in 2009 GDP,” Liu said.

Taiwan's gross domestic product growth is projected at 5.08 per cent for 2009 according to government figures, after an estimated 4.30 per cent for 2008.

However, analysts and businessmen were more sceptical.

“I can't see that the programme will have much impact on the GDP. If people can't make their ends meet, they won't be encouraged to spend more just by getting the vouchers,” said Johnny Lee, an analyst at President Securities.

“I think the government should focus on long-term plans to boost consumer confidence, such as lowering commodity prices, improving job securities and reviving the economy,” he said.

Douglas Hsu, head of the Far Eastern Group which includes the leading Sogo department store chain, also sounded a note of caution.

“I support it as it can stimulate some (spending) but it's not an elixir,” he told reporters.

The vouchers, which will expire in December 2009, can be used at registered retail stores, supermarkets and restaurants, officials said.

The scheme, proposed by the island's top economics planning body, the Council for Economic Planning and Development, is based on a similar initiative launched by Japan in 1999.—AFP