Prime Minister Fumio Kishida asked senior ruling coalition executives on Friday to consider reducing income tax as a temporary measure to relieve households from the adverse effects of inflation, in his latest push for the redistribution of economic growth.
While details need to be worked out toward the end of the year, party executives said after meeting with Kishida that a tax cut will likely be effective for a year and a separate payout program will help low-income earners who are already exempt from taxation and would be otherwise left out of the loop.
A cut in income tax is expected to be a key feature of an inflation-relief package that the Cabinet plans to finalize on Nov. 2, as rising prices of everyday goods are already squeezing household budgets while real wages are falling.