Japanese gov't to begin cash handouts to households in May due to COVID-19

Japanese Economic Revitalization Minister Yasutoshi Nishimura confirmed the plan, agreed to by the government at the beginning of April, at a press conference on Tuesday.

Under the initiative, the government will provide 300,000 yen (2,800 U.S. dollars), to households whose monthly income has dropped to a certain level in one month between February to June.

The exact details of the cash payments, including who exactly qualifies for the subsidies and the assessment criteria, are still being worked out by the internal affairs ministry, Japan's top government spokesperson Yoshihide Suga said Tuesday.

Chief Cabinet Secretary Suga said the procedure will be kept simple and will involve the heads of households in Japan being given the cash handouts based on the amount of income lost due to the virus.

He added, however, that extenuating circumstances related to households would be taken into consideration in issuing the handouts.

The cash handouts will be made without setting an income limit and will be tax free, government officials added, although an unprecedented method of judging which households are eligible for the payment will be implemented, Nishimura said.

High-income earners, such as politicians and corporate executives, among others, whose livelihoods had clearly not been affected by the pandemic would not qualify for the financial support, Nishimura also said.