Taipei: The Legislature on Friday passed a law establishing two government-funded savings accounts that will receive annual deposits of NT$60,000 (US$1,854) for citizens under age 18, in an effort to address Taiwan's declining birthrate. The Special Act on Taiwan Future Accounts, proposed in December last year, was passed with support from the opposition Kuomintang (KMT) and Taiwan People's Party (TPP), which together hold a majority in the Legislature. According to Focus Taiwan, under the new law, eligible citizens younger than 8 will receive annual deposits of NT$60,000 into a Growth Allowance Account. Those aged 7-17 will have NT$30,000 deposited in a Growth Allowance Account and NT$30,000 in a Future Account each year. Additionally, the law mandates an initial NT$60,000 deposit into a Future Account for each recipient born after it takes effect. The legislation will become effective following promulgation by President Lai Ching-te. The law applies to nationals under age 18 who reside in Taiwan for at le ast 183 days a year. The TPP has estimated that the initiative will cost NT$200 billion annually. Funds in a Growth Allowance Account can be withdrawn by the account holder's legal representative at any time, whereas those in a Future Account cannot be accessed before the account holder turns 18, except under specific circumstances. The Bureau of Labor Insurance under the Ministry of Labor will manage the Future Accounts, ensuring returns are not lower than two-year domestic bank time-deposit rates. Any shortfall will be covered by the national treasury. Before an account holder turns 12, family members can make unlimited annual deposits into a Future Account, while employers of the account holder's legal representatives can contribute up to NT$50,000 per year. A provision for tax exemptions on voluntary deposits into Future Accounts was dropped by opposition lawmakers after Democratic Progressive Party (DPP) members raised concerns about potential tax evasion. Instead, the law leaves tax incentives for vol untary deposits and business donations to be determined by the government. In May, President Lai proposed a program providing a monthly NT$5,000 "growth subsidy" for each child under age 18. The plan outlines that families with children age 5 and under would receive the full subsidy, while half of the monthly subsidy for children aged 6-17 would be deposited into individual savings accounts. This program is anticipated to start in 2027, with an estimated cost of NT$200 billion annually. DPP lawmaker Fan Yun expressed concerns that the KMT-TPP proposal allowing additional deposits into Future Accounts by parents and businesses could exacerbate inequality through reverse redistribution. KMT caucus leader Fu Kun-chi emphasized the law's aim to tackle Taiwan's declining birthrate, a challenge he described as a national security crisis. He noted that Taiwan Semiconductor Manufacturing Co. (TSMC)-driven tax revenue growth might result in over NT$1 trillion in excess revenue this year, potentially encouraging youn g people to start families. TPP caucus leader Chen Ching-lung highlighted that Lai's proposal would be executed administratively rather than through legislation, which leaves its continuity uncertain.