By Leika Kihara

TOKYO (Reuters), Japan’s newly elected Prime Minister Fumio Kirishima indicated Monday that a reduction in the country’s tax on income will be an option for reducing income disparity.

Kishida said in his first news conference that he is now prime minister. He also stated that he may offer cash payouts for households affected by the coronavirus epidemic.

“I have flagged the possibility of a slight modification to Japan’s financial income tax. This is not all. Kishida suggested that tax cuts could be offered to employers who increase their wages.

Kishida stated that he would pursue policies to achieve “a new kind of capitalism”, which distributes wealth more evenly to the households, and reduces Japan’s income gap.

A number of academics call for Japan to increase its financial income tax, which is levied on investments income, from the 20% currently in place. The goal is to collect more money from the riches and to fund aid to low-income households.

Kishida said that he will create a permanent committee to help come up with ways to increase economic growth in the post-pandemic world.