Tokyo, November 21 (IANS). To deal with rising inflation in Japan, Prime Minister Shigeru Ishiba has announced an economic package of 39 trillion yen (about $252 billion). This information was given by the local media on Thursday.
According to Xinhua news agency, sources told Kyodo News that the package will include subsidies to reduce the high prices of electricity, gas and petrol and providing cash assistance to low-income families.
The Cabinet plans to formalize the stimulus measures on Friday. The government intends to include the approximately 13.9 trillion yen normally spent to finance the package in the upcoming supplementary budget for fiscal year 2024.
The package will also include a plan to increase the tax-free income limit, which will be raised based on opposition party demands, the report said.
It is noteworthy that to pass the funds for this package, the ruling coalition will need the cooperation of the opposition party.
The ruling coalition of the Liberal Democratic Party and its ally Komeito accepted the Democratic Party for the People’s request to raise the non-taxable income level from the current 1.03 million yen in order to get their support to pass the budget bill. The alliance lost its majority in last month’s general elections.
The opposition party wants to raise the limit on this money to 1.78 million yen to encourage consumption. But the government estimates that the proposal could reduce annual tax revenues by an estimated seven-eight trillion yen.
–IANS
PSM/AKJ
