Economy J-gov approves 17 trillion JPY stimulus package to fight inflation

Income tax will be cut by 30,000 yen and resident tax by 10,000 yen per person for one time. Low-income households already exempt from the latter will receive 70,000 yen. The economic stimulus plan also includes an extension until the end of April 2024 of subsidies to ease the rising prices of gasoline, electricity and gas. Japan's core consumer price index climbed 2.8% in September from a year earlier, down from a 3.1% increase in August, according to official data. But food prices, excluding fresh items, rose sharply by 8.8%. The massive stimulus comes as Kishida continues to face challenges. The approval rating for his cabinet dropped nine percentage points from September to 33%, according to a poll Nikkei and TV Tokyo conducted from Oct. 27 to 29. That was the lowest since he took office in October 2021.

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The bespectacled Kishida -- known as a dovish moderate within the conservative Liberal Democratic Party -- has pledged to raise taxes within the next few years, such as those on companies, to cover an envisioned increase in the defense budget, leading him to be given the derogatory nickname. "I do not care what you call me," Kishida said after his cabinet endorsed new economic stimulus steps. "I will do what I believe should be done to shore up the economy, bolster defense capabilities, enhance child care support and promote energy policies." "I want to value the attitude of making decisions on what I believe should be done and carrying out necessary policies, while carefully planning the order and method of doing things," he said at a press conference.

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