Key Facts
• Government to finalize comprehensive economic measures by late November 2025.
• Plans include ‘rice coupons’ to address rising rice prices.
• Gasoline subsidies to increase gradually; temporary tax ends December 31, 2025.
• Diesel tax to be abolished on April 1, 2026.
• Support for electricity and gas bills from January to March 2026 during peak winter usage.
• Expansion of ‘Priority Local Subsidies’ for flexible municipal use.
• Medical and elderly care facilities to receive operational and treatment improvement support.
• Multi-year budget plans to promote public-private investment in AI, semiconductors, and shipbuilding.
Summary
The Japanese government is preparing a comprehensive economic strategy to be finalized by late November 2025. Key measures include introducing ‘rice coupons’ to combat rising rice prices and expanding ‘Priority Local Subsidies’ for municipal projects. To address inflation, gasoline subsidies will increase, with temporary taxes on gasoline and diesel set to end by December 2025 and April 2026, respectively. Additional support will cover electricity and gas bills during the winter months of 2026. The plan also includes funding for medical and elderly care facilities and multi-year investments in AI, semiconductors, and shipbuilding to boost public-private collaboration.
