The Japanese government said Friday that it is considering providing around ?5,000 a year to low-income workers under a proposed income-linked benefit program.
Under the program, a fixed amount is expected to be given to people in work who earn ?1.19 million or less annually. The government expects the amount to gradually increase until the annual income reaches ?1.6 million. The benefits will decrease gradually after the annual income exceeds a certain level.
The plan was outlined in documents submitted by the government at a board meeting of the Financial Affairs Committee of the House of Representatives, the lower chamber of parliament.
The committee is discussing bills aimed at reducing the 8% consumption tax on food to 1% for a two-year period starting next April and introducing the benefit program.
The government plans to provide ?600 billion in benefits a year in total, a figure equivalent to 1% of the consumption tax.
Noting that the ?600 billion amounts to ?5,000 per capita by simple calculation, the government said in the documents that it will consider the amount of benefits for low-income earners using the figure as a reference.
The government has also put forward an estimate that the average amount of benefits will be ?30,000 if about 20 million people with an annual income of 1 million to ?3.5 million are eligible for them.
Finance Minister Satsuki Katayama has stressed that these figures are for reference only and that the government has not presented its proposals.
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