Japan's government has unveiled a sweeping package of tax reforms and economic support initiatives aimed at easing the financial burden on households and businesses, according to multiple reports from NHK and other news sources. The measures come as the country faces economic headwinds from rising costs and international trade pressures. In a significant move to reduce living costs, the Diet passed legislation on November 25th abolishing the temporary gasoline tax rate, which will take effect on December 31st. The bill received unanimous support in the House of Representatives and has been sent to the House of Councillors, where it is expected to pass during the current legislative session, according to NHK. This reduction will lower fuel costs for all residents, including foreign nationals living in Japan. The Democratic Party for the People has separately submitted legislation to eliminate the automobile "environmental performance tax," which currently applies to vehicle purchases based on fuel efficiency ratings. This proposal aims to reduce the tax burden on consumers and increase take-home income for households across Japan. For businesses, particularly small and medium-sized enterprises (SMEs), the Ministry of Economy, Trade and Industry announced plans to expand support systems through the current fiscal year's supplementary budget. According to NHK, these measures respond to challenging conditions facing SMEs due to U.S. tariff policies and rising operational costs. The ministry's initiatives will provide enhanced assistance to help smaller businesses navigate the difficult economic environment. Prime Minister Takaichi convened the first "Government-Labor-Management Conference" since her cabinet's formation, where she outlined economic measures including grants to local governments designed to support wage increases at SMEs. The government is prioritizing wage growth as a key component of its economic strategy, recognizing that sustained salary increases are essential for improving living standards. In a move inspired by the Trump administration's efficiency initiatives, the Japanese government announced the establishment of what it calls the "Japan version of DOGE" (Department of Government Efficiency). This new office, formally titled the "Special Tax Measures and Subsidies Review Office," will examine government programs with low policy effectiveness and work to eliminate wasteful spending. The government plans to solicit public input through social media platforms, allowing residents—including expats—to share their perspectives on which programs should be reviewed or reformed. The ruling coalition of the Liberal Democratic Party and the Japan Innovation Party confirmed they will finalize the government's tax reform outline by year-end. This timeline means concrete details about tax changes affecting foreign residents should become available in the coming weeks. The government plans to approve the supplementary budget supporting these economic measures on November 28th, according to NHK reports. This budget will provide the financial backing for the various support programs announced. However, not all government spending decisions have been well-received. The LDP announced plans to increase Diet members' salaries by 50,000 yen per month, aligning with raises for special national civil servants. This proposal has drawn criticism given the government's simultaneous emphasis on fiscal efficiency and household support. Additionally, the Ministry of Finance announced strengthened measures against gold smuggling at customs, including enhanced confiscation procedures, as high gold prices have raised concerns about increased smuggling attempts. For foreign residents in Japan, these reforms present both opportunities and considerations. Lower fuel costs will benefit anyone who drives or relies on transportation, while potential automobile tax reductions could make vehicle ownership more affordable. Business owners and employees of SMEs should monitor available support programs that could provide financial assistance or facilitate wage increases. As the tax reform outline takes shape in December, expats should stay informed about changes that may affect their personal tax situations and consult with tax professionals regarding their specific circumstances.