Japan's Prime Minister Kishida plans an income tax cut for households and corporate tax breaks
Japan’s Prime Minister Fumio Kishida says he is preparing to take bold economic measures, including an income tax cut for households hit by inflation and tax breaks for companies to promote investment
TOKYO — Japan's Prime Minister Fumio Kishida said Monday he is preparing to take bold economic measures, including an income tax cut for households hit by inflation and tax breaks for companies to promote investment, in what's seen as a move to lift his dwindling public support.
In his speech to start a new Parliamentary session, Kishida said it was time to shift from an economy of low cost, low wages and cost-cutting to one backed by growth led by sustainable wage hikes and active investment.
“I'm determined to take unprecedentedly bold measures,” Kishida said, pledging an intensive effort to achieve stronger supply capability in about three years. “I will put more emphasis on the economy than on anything else.”
He said he is determined to help people ride out the impact of soaring prices for food, utilities and other costs that have exceeded their salary increases, by implementing income tax cuts. He also pledged to introduce corporate tax incentives to promote wage increases, investment and optimization.
Previously, Kishida had been considered reluctant to cut taxes because his government must find the funds to double Japan's defense budget within five years as planned while also trying to counter the impact of Japan’s low birth rate and rapidly declining population.
Kishida's pledge on tax breaks has been criticized by opposition leaders as a vote-buying attempt because the proposals surfaced just before two by-elections held on Sunday that were seen as a litmus test for potential snap elections.
His Liberal
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