News highlights

1. Fixed-amount tax cuts start
   Starting in June, a "flat-rate tax cut" will begin, reducing taxes by 6 yen per person. The lower your income, the more the tax cut will be spread out over multiple installments. High-income earners and families living overseas are not eligible.
2. Food and utility price hikes
   Starting in June, prices of food items such as snacks and instant noodles, as well as electricity and gas prices will rise. The reason is the rising cost of raw materials and logistics costs, and a decrease in government subsidies. Electricity bills are expected to increase by 6 to 357 yen per month.
3. Pension payments will decrease
   The amount of pension payments is revised every year in line with fluctuations in prices and wages, but this year the amount will effectively decrease as it has not kept up with the rise in prices. Although the amount of payments will increase slightly, it is kept low to ensure the level of future payments.
4. New tax "Forestry Environment Tax"
   The "Forestry Environment Tax" will begin in June, with an additional 6 yen per person per year added to the resident's tax. This tax will be used for forest maintenance and human resource development in the forestry industry.

Examples of questions to ask your child and answers

Fixed-amount tax cuts start

Question: What is a flat-rate tax reduction?

Example answer: The flat-rate tax cut is a system that reduces taxes by 1 yen per person, easing the burden on household finances. It is especially targeted at people with low incomes, and applies to the whole family, so in my case, the tax cut would be about XX yen (4 yen x number of dependents).

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Food and utility price hikes

Question:Why do you think snacks and electricity bills are so high?

Example answerFor example, to make the potato chips you like, you need to grow potatoes, transport them, and then manufacture them in a factory. The cost of doing so is rising, so the price at the store is also going up. Also, the price of electricity is going up, so the price of electricity you use at home is also going up.

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Pension payments will decrease

Question: What are pensions and why are they being reduced?

Example answer: Pensions are money for the elderly like our grandparents to live on. Prices have risen this year, but the amount of pensions has not kept up with the price rise, so the amount is effectively decreasing.

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New tax "Forestry Environment Tax"

Question: What is the purpose of the forest environment tax?

ReplyAn example: The forest environment tax is money for protecting and maintaining forests, and a portion of the taxes we pay is used to keep forests in good condition.

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