Daily Management Review

Japanese government approves $112bn economic stimulus package


According to the Nikkei newspaper, Japan's government has approved an economic stimulus plan worth 17 trillion yen ($112 billion), which includes temporary reductions on residence and income taxes.

At a press conference on Thursday, Japanese Prime Minister Fumio Kishida stated, "The pace of wage increases has not kept pace with rising prices. Our goal is to boost consumption by implementing policies that raise people's disposable income. "

As a result, residence tax will be lowered by 10,000 yen, and income tax by 30,000 yen per person. Citizens with low incomes who are exempt from resident tax will be given a subsidy of 70,000 yen. The modifications will go into force in June 2024.

In addition, the Japanese government is extending the current subsidies until the end of April 2024 in order to help citizens with the rising costs of gas, electricity, and fuel.

According to Nikkei, the government's stimulus program will necessitate an additional 13.1 trillion yen in budgetary outlays.

The Japanese parliament will discuss the plan later this year.

source: nikkei.com