Digital Agency Launches New Subsidy System for Low-Income Households

Feb 13, 2024 | News On Japan

TOKYO - In an effort to streamline the distribution of subsidies to low-income households, Japan's Digital Agency has commenced the provision of a new system that allows both residents and local governments to complete procedures entirely online.

Digital Minister Kono remarked, "This subsidy support service enables the entire process from application to deposit of the subsidy to be completed digitally for the current subsidy program."

Last year, the government decided to provide subsidies to low-income households that do not qualify for fixed tax deductions. However, the complexity of the system has made the acceleration of procedures a significant challenge.

With the new system, residents who receive a subsidy notification from their local government can apply online using their My Number card. This process automatically fills in personal and account information, eliminating the need for submitting copies of bankbooks.

Furthermore, the system allows local governments to process applications digitally, significantly streamlining administrative tasks such as reviews. It is said that this efficiency can enable subsidies to be disbursed in as little as three days after application.

For the fiscal year 2023, 17 local governments nationwide are scheduled to adopt the system, with plans to expand its use to other subsidy programs in the future.

Source: ANN

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