Tokyo, Nov. 13 (Jiji Press)–Japanese Prime Minister Sanae Takaichi said Friday that the government will design a planned income-linked benefit program so that at least 50 pct of workers are eligible for benefits. The benefit program is part of a bill that would reduce the consumption tax rate on food from 8 pct to 1 pct for two years starting in April 2027. The government plans to provide 600 billion yen in benefits a year in total, a figure equivalent to revenue from 1 pct of the consumption tax on food before the program is fully implemented in fiscal 2029. More than 40 pct of male workers would be eligible for the support. “We will deliver benefits to as many middle-income workers as possible,” Takaichi said at the day’s meeting of a special committee of the Senate, the upper chamber of the Diet, which began substantial deliberations on the bill the same day. Referring to similar programs abroad, the government had cited an estimate that around 20 million people, or roughly 30 pct of Japan’s active workforce, would be eligible for the benefit. Following the prime minister’s remarks, the scope has expanded significantly to approximately 30 million people. The prime minister explained that the benefit program would initially provide a model family of two parents and two children with a total of up to 60,000 yen per year. Total annual benefits would include 5,000 yen for low-income earners, an additional child allowance of 5,000 yen, and basic aid of 25,000 yen. Takaichi provided these details in response to a question from Hisatake Sugi of Komeito, an opposition party. Executives of the special committee agreed to hold a total of seven hours of deliberations on the bill on Monday and Wednesday. A regional public hearing is scheduled on Nov. 20. END [Copyright The Jiji Press, Ltd.]
