Japan's tax cut proposal fuels concern over fiscal health

Kishida kicks off debate as officials stress reduction will be temporary

Japanese Prime Minister Fumio Kishida speaks to reporters at his office in Tokyo on Oct. 20 about his instructions to consider an income tax cut. (Photo by Yuki Nakao)

HIROYUKI AKIYAMA, SHIKO UEDA and MASAYA KATO, Nikkei staff writers

October 21, 2023 05:08 JST

TOKYO -- Japanese Prime Minister Fumio Kishida told senior officials of the ruling coalition Friday to consider temporarily reducing the income tax to help consumers struggling to keep up with rising prices.

But the proposal, which comes in addition to gasoline subsidies and other inflation-related stimulus, is already raising concern for its potential impact on government coffers.