Japan to Move Up Free Preschool Education Plan

May 29, 2018

Tokyo- The Japanese government plans to move up a plan to make preschool education free of charge to October 2019, when the country is scheduled to raise the 8 pct consumption tax to 10 pct, officials said.

The government previously planned to fully implement the free preschool education program in April 2020. The change in the timing is designed to reduce the burden from the tax increase on families with small children.

The government will include the front-loading in its annual economic and fiscal policy guidelines due out next month.

The free preschool education program will cover children aged up to 2 of low-income families that are exempt from residential tax payments and three- to five-year-old children of all households attending kindergartens and nurseries meeting national standards.

Previously, the program was to start in April 2019 only for five-year-olds and to expand the coverage to include children aged up to 4 in April 2020.

The change reflected concerns that the consumption tax hike will weigh on consumption by households with children.

The free preschool education program will be financed by part of additional revenues that will become available following the tax increase.

As for children attending other types of nurseries, the government intends to provide up to 35,000 yen per month, the country's average nursery fee, only to households recognized by municipalities as being in need of childcare services. Jiji Press