[Asia Economy Reporter Jeong Hyunjin] On the 3rd, Yomiuri Shimbun and others reported that the Japanese government is adjusting a plan to provide 200,000 yen (approximately 2.3 million won) in cash per household to households whose income has decreased due to the spread of the novel coronavirus infection (COVID-19).
According to the report, the Japanese government is considering a 'self-reporting system' where those who want benefits submit an application form detailing their income and the extent of the decrease, and payments are made accordingly. Applications for cash payments will be accepted at local governments nationwide. Whether to provide the cash payment is expected to be included in the COVID-19 emergency economic measures to be announced by the government on the 7th.
This aims to support households mainly with low income or those whose income has sharply declined, and the cash payments will be exempt from taxation. Kyodo News reported that out of Japan's total 58 million households, about 10 million households are expected to be eligible for the payment.
The cash payment is being demanded by the ruling Liberal Democratic Party, while the opposition Komeito Party has recommended to Prime Minister Shinzo Abe to provide 100,000 yen per person. The Japanese government also distributed 12,000 yen per person to all citizens after the 2008 global financial crisis.
Kyodo reported that uniform cash payments would support even the wealthy, and since recipients tend to save a significant portion of the support funds, reducing the economic stimulus effect, this time the government decided to limit the payment recipients.
The Japanese government also plans to provide cash support amounting to trillions of yen to small and medium-sized enterprises and sole proprietors whose sales have sharply declined, in addition to households with decreased income.
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