"Raise Approval Ratings" Japan's Kishida Pushes 900,000 Won Tax Cut Package Per Household

90 Million People Targeted... 5 Trillion Yen Scale

Japanese Prime Minister Fumio Kishida announced plans to implement a tax cut policy averaging 100,000 yen (approximately 900,000 won) per household starting June next year, drawing attention to the background of this move. While it appears to be an emergency measure aimed at boosting the cabinet's approval rating, which has plummeted to the 20% range, it remains uncertain how much the policy will actually raise support.

According to the Nihon Keizai Shimbun (Nikkei) on the 27th, Prime Minister Kishida instructed at a party-government policy meeting the day before to "implement a fixed tax cut of 40,000 yen (360,000 won) per person on income tax and resident tax starting June next year," specifying this support measure.

[Image source=Yonhap News]

He also explained the background for pushing the tax cut by stating, "The government will support wage increases until they can catch up with inflation," and "Over the past two years, revenue from income tax and resident tax has increased by about 3.5 trillion yen."

If the tax cut is implemented without income restrictions, the number of beneficiaries will reach 90 million people. Including dependents, a three-person household could receive benefits amounting to 100,000 yen.

Additionally, households that do not pay either income tax or resident tax will receive 70,000 yen (630,000 won) per household. Combined with the 30,000 yen (270,000 won) benefit proposed in the inflation countermeasures announced last March, households are expected to receive an average benefit of 100,000 yen.

Nikkei analyzed that the total support amount through this tax cut package is expected to reach 5 trillion yen (45 trillion won).

The final plan is scheduled to be included in the economic measures to be finalized on the 2nd of next month.

This measure appears to be a breakthrough proposed by Prime Minister Kishida to overcome the low approval ratings. The cabinet's approval rating has fallen to its lowest since its launch in various polls this month. In a poll conducted by the Mainichi Shimbun on the 14th and 15th of this month, the approval rating was only 25%.