by Tyler Prochazka | Aug 9, 2025 

 

Taiwan is set to issue its second-ever universal cash payment to all citizens. Opposition party legislators cited economic uncertainty caused by tariffs as one of the justifications for this round of payments. 

This year’s universal payment is set to be issued by October 31, 2025. In addition to excess tax revenue, legislators supplemented the special budget by eliminating an electricity subsidy to its national electricity provider. As a result, Taiwan was able to increase its payment to NT$10,000 (approximately $300 USD) this year compared to NT$6,000 for its 2023 universal payment. 

Such a move put the concept of universal payments to the forefront of Taiwan’s political debate, which until recent years faced reluctance to provide direct cash payments. That changed after Taiwan exited the pandemic in 2023 with significant excess revenues, largely generated from the tech industry, and legislators moved to ‘refund’ this money directly to citizens. 

“A second universal payment demonstrates the gradual mainstreaming of basic income as a legitimate policy direction in Taiwan,” Tyler Prochazka, UBI Taiwan’s founder, said.

This was a unique case of universal cash becoming a major national political issue in non-pandemic times. The two main factions in Taiwan, the so-called green and blue parties, fought over the payment. After the special budget was passed, the Executive Yuan deliberated whether to veto the universal payments. 

Over the past several months, UBI Taiwan has met with legislators in both parties to discuss basic income in the run-up to the universal cash vote.

UBI Taiwan’s chairman Jiakuan Su argued that universal payments represent “trust that everyone will be able to make the most of these resources according to their needs.”

Last month, a massive recall referendum was held for 25 legislators from the party that supported universal cash, the Nationalist Party (KMT). However, all of the recall campaigns failed against the KMT in a massive political upset for the Democratic Progressive Party (DPP), which controls the Executive Yuan and the presidency. 

Critics accused the KMT of using the universal cash as a way to “buy” voters ahead of the recall. During the recall vote, the KMT advocated for Taiwanese to vote “no” to protect their universal cash distribution.

After the failed recall, the Executive Yuan decided not to veto the cash. An analyst credited the universal cash as helping turn around the KMT’s fortunes ahead of the recall. In August, another recall vote will occur, and a veto of the cash may have provided additional ammunition for the KMT to use against the DPP in that referendum.

Instead, DPP legislators are now attempting to propose that local governments make additional cash payments on top of the national payment, in what some call an attempt to co-opt the issue for their party. 

The Executive Yuan signaled that while they will not veto the matter, they will refer the universal cash to the Constitutional Court to confirm if the Legislative Yuan violated a requirement to consult the Executive for excess budgets. 

Henry Lee, a member of UBI Taiwan’s Executive Board noted this is a major milestone for unconditional cash payments in Taiwan, but these one-off payments are still distinct from basic income. 

“Some people may decide to plan a weekend trip or a fancy dinner, but no one will decide to leave a hostile workplace and pursue their own life’s possibilities,” Lee said.

There is currently no major discussion to make these payments permanent, as a basic income would require.

UBI Taiwan’s chairman Su said that his organization’s goal is to use the momentum from the one-time payment to gradually establish a “resilient institutional framework” for a regular basic income.

Supportive legislators framed the payments as “shared prosperity” and as a “tax refund”, distinguishing from basic income as an entitlement regardless of economic conditions. Even with this framing, critics still argued the payments were an improper use of funds.

Nonetheless, Lee argued that the payments are a positive development for basic income momentum in Taiwan.

“A universal cash payment is the stepping stone to UBI, sparking public discussion and imagination about a universal cash payment system,” Lee said. “UBI Taiwan hopes to use this to propose UBI policies and make society understand that ensuring people’s basic living needs is a long-term commitment that the government should shoulder.”