Govt Plans to Urge Municipalities to Help Residents Cope with Rising Prices

The Yomiuri Shimbun

7:00 JST, November 13, 2025

Municipalities will be encouraged to take such steps as issuing premium shopping vouchers to help their residents cope with rising prices, according to a draft of the government’s comprehensive economic stimulus measures, which are to be compiled by the end of this month.

The central government will increase subsidies that local governments can use at their discretion. In addition to encouraging municipal authorities to distribute premium shopping vouchers, it plans to add subsidies for electricity and gas bills this winter.

To realize a strong Japanese economy, the government will enhance investments in strategic industrial fields including semiconductors and shipbuilding.

The economic stimulus package comprises three main pillars: implementing measures to encourage a sense of security in daily life and cope with rising prices; realizing a strong economy through investments in crisis management and measures for economic growth; and strengthening defense and diplomatic capabilities.

The central government pledges to implement the measures through all possible policy measures, including the government budget, taxation system reform and deregulation reform.

Among its measures to cope with rising prices, the central government will increase subsidies to local governments and encourage municipal authorities to issue premium shopping vouchers and My Number ID card points to boost personal consumption.

It will also consider utilizing shopping vouchers exclusively for buying rice, and assistance for small and midsize companies that are unable to receive preferential tax treatment for raising employees’ wages.

Regarding surging house prices, the draft of the economic stimulus measures includes raising the upper limits on lending amounts for the Flat 35, a government-assisted long-term housing loan scheme in which interest rates are fixed for up to 35 years.

As for raising the minimum amount of taxable annual income, the government plans to increase the basic tax deduction for income taxes in accordance with price levels.

For low-income earners and members of the middle class, the government will discuss introducing a refundable tax credit system so that the after-tax incomes of low-income earners and middle-class people can increase in accordance with their income levels.

Concerning investments in strategic industrial fields, the government aims to implement capital investments in a concentrated manner for mass-production of advanced semiconductor products. Demand for such products is expected to grow worldwide.

The government also aims to build or improve the electric power supply and other infrastructure needed to accommodate data centers. It plans to devise a road map toward the revitalization of the shipbuilding industry, and also consider the establishment of a fund to assist in the construction of production bases and research and development projects.

Concerning the $550 billion (about ¥85 trillion) in investments in the United States agreed to under a Japan-U.S. tariff deal, the government will implement necessary fiscal aid to the Japan Bank for International Cooperation and Nippon Export and Investment Insurance.

For companies whose sales or profit margins fell by 5% or more because of the negative impact of U.S. tariffs, the government plans for the Japan Finance Corporation to assist their cash management by extending loans at preferentially low interest rates.