TAIPEI - TAIWAN is planning to decriminalise prostitution by revising laws punishing sex workers and is considering allowing red-light districts, the cabinet said on Wednesday.

The proposal came after a meeting of the cabinet's human rights committee, which also called for the drafting of new rules and other supporting measures within six months to regulate the sex trade.

Sex workers' opinions should be included in the law-making process while the health department can offer them free screening for sexually transmitted diseases, a cabinet statement said.

The committee also suggested that the establishment of red-light districts should be decided by regional governments and councils rather than the public via referendums, pending the law revision.

Under existing laws, prostitutes face detention of three days or a fine of up to NT$30,000 (S$1,335) if they are caught providing sexual services. Their clients go unpunished.

While there is no official estimate of the scale of Taiwan's sex industry, it is estimated to involve hundreds of thousands of people and generate an annual revenue of up to 60 billion Taiwan dollars, observers said.

About 50 prostitutes are licensed nationwide under laws enacted in 1956. However, the government has since stopped issuing licences, allowing these permits to be phased out. -- AFP