PM Kishida-90mn People Will Be Eligible For Tax Rebates

Wires carrying comments from PM Fumio Kishida speaking about his USD113bn (JPY17trn) stimulus package claims that 90mn Japanese residents will be eligible for tax cuts under the proposals. Also claims that his gov't, "Will prod firms to achieve wage hikes next year that exceed those of this year...[We] want to ensure growth in household income exceeds pace of inflation."

• The significant spending package, JPY13trn of which will be paid for via a supplementary budget through to the end of FY23/24, is intended to deal with rising inflationary and cost of living pressures on households, with JPY5trn in temporary reductions in residential and income tax, electricity and petrol subsidies, and assistance for firms to raise wages.
• FT: "According to the Nomura Research Institute, the temporary tax cuts and handouts are expected to boost Japan’s real gross domestic product by just 0.2 per cent on an annual basis. Similar measures in the past have failed to spur meaningful consumption since Japanese households tend to save extra cash."
• The measures come amid record-low approval ratings for Kishida and his Cabinet. Kishida faces a race against time either to boost these ratings or win a strong result in a snap general election before the 2024 leadership contest within the ruling Liberal Democratic Party (LDP).