Japanese PM vows tax revenue return with income tax cut in mind

Japanese Prime Minister Fumio Kishida vowed on Monday to give back to the people part of increased tax revenues to ease their burdens while expressing his intention to study income tax cuts.

"Economy, economy, economy. I will give top priority to the economy above all else," Kishida said in his policy speech at an extraordinary parliamentary session, pledging to take steps over the next three years, including tax cuts, to rejuvenate the Japanese economy that has been stifled by rising prices and sluggish wage growth.

The prime minister said the next three years will be designated as a period of transformation, and his government will implement tax breaks for companies intending to raise salaries for employees and increase capital investment.

Strengthening supply chains and returning some of the increased tax revenue to people will be the two wheels of the economic package that is being compiled, Kishida added.

Kishida has voiced willingness to compile a new economic stimulus package by the end of October and submit a supplementary budget for the current fiscal year through March 2024 to fund it during the extraordinary parliamentary session set to run until December 13.