Prime Minister Fumio Kishida on Thursday asked senior ruling coalition lawmakers to work out the specifics of a tax cut plan that will go into an economic package to ease the burden on households hit by inflation.

The government is considering a tax cut of ¥40,000 ($266) per person — ¥30,000 for income tax and ¥10,000 for residence tax. Low-income households who are exempt from tax payments are expected to receive ¥70,000 in cash.

Kishida's Cabinet is expected to formalize the economic package on Nov. 2, featuring subsidies to lower energy costs and other steps allowing the economy to ride out the current squeeze.