Prime Minister Sanae Takaichi said at a Senate special committee on the 13th that an income-linked cash benefit planned alongside the food consumption tax cut would cover more than half of all workers, over 30 million people.
The government had described the threshold as "30 percent or more." The expansion follows opposition demands for broader support, the Sankei Shimbun reported.
Takaichi told the committee the government is considering an income ceiling that would put more than half of active workers in line for the payout.
“We are considering setting an income ceiling that would make more than half of active workers eligible, so that more middle-income working people can receive the benefit.”Sanae Takaichi, prime minister
Income thresholds
The government is moving toward a floor of 530,000 yen in annual income, the level at which employment insurance applies. Covering more than half of workers would likely put the ceiling at 4 million to 5 million yen.
Takaichi said that if more than half of workers qualify, about 40 percent or more of male workers are expected to be covered.
For the first two years, fiscal 2027 and fiscal 2028, the government is considering a base payment of up to about 25,000 yen. The amount would rise with the number of children.
Tax bill enters debate
The bill tied to the food tax cut entered substantive debate at the Senate special committee on the 13th. It centers on cutting the consumption tax rate on food and drink from 8 percent to 1 percent for two years, alongside the income-linked cash benefit.
The government and ruling parties aim to pass the bill by the end of the current Diet session on December 12.