The government finalized a package of meas-
ures Friday to deal with soaring prices, includ-
ing a ¥50,000 handout for low-income house-
holds.
About 16 million households that are exempt
from resident tax will be eligible for the
handout. According to government sources, the
handout was decided because soaring prices of
electricity, gas and food have a greater impact
on lower-income households.
The measures were compiled by the
headquarters for comprehensive measures on
prices, wages and living conditions, which is
headed by Prime Minister Fumio Kishida.
The government will also extend subsidies to
oil wholesalers until the end of the year to curb
the rise in gasoline prices.
The reserve fund in this fiscal year's budget
will be used to cover the cost of the measures.
"Protecting livelihoods and business activ-
ities is the top priority of the government,"
Kishida said at the meeting. He instructed min-
isters to implement the measures as soon as
possible.
The gasoline subsidy, which was to expire this
month, will be extended until the end of
December. The government has so far spent
about ¥300 billion per month to keep the retail
price of gasoline at ¥170 per liter, which would
otherwise have been more than ¥200.
In addition, the price of imported wheat that
the government buys from overseas and sells to
domestic millers will remain at the current level
after October.
About 90% of wheat consumed in Japan is
imported, so if the price of imported wheat in-
creases, the prices of bread, noodles and other
products that contain wheat also go up, hitting
household wallets.
The government has also decided to increase
a temporary subsidy for regional development
that local governments can use at their dis-
cretion to implement price control measures by
¥600 billion. Local governments can use the
funds to provide support in line with the actual
situation in each region.
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