Japan considers moving up part of income-linked benefits payment schedule in 2029
Moving up part of the payments is intended to mitigate the financial burden on households after the consumption tax rate for food is brought back to the original 8% rate in 2029.
Japan is contemplating adjustments to its income-linked benefit program's payment schedule, aiming to distribute a portion of the aid earlier in 2029. This move is anticipated to alleviate the financial strain on households, particularly after the consumption tax rate for food is scheduled to revert to 8% in April 2029, following a two-year reduction to 1%.
The government plans to implement the full benefit program in fiscal 2029, with payments typically occurring around September. However, the return of the tax rate could impose a significant burden on households if they must wait until September to receive their benefits. A two-staged payment plan, involving additional administrative work for local governments, is under consideration by the central government and ruling coalition.
Prime Minister Sanae Takaichi is committed to restoring the tax rate to 8% post the two-year period, though the exact program details, including benefit amounts and income thresholds, remain to be determined.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
