Japanese Prime Minister Kishida Fumio has told lawmakers of the ruling parties to work out the details of a tax cut and subsidies plan as part of a new economic package.

Kishida told a meeting of the government and the ruling parties on Thursday that Japan is facing an opportunity to escape deflation that has lasted for three decades.

But he added the price increases are outpacing wage hikes. He said the government should support households by sharing tax revenues.

Government officials proposed a fixed tax break of 40,000 yen, or about 260 dollars, per taxpayer and dependent. It consists of 30,000 yen for income tax and 10,000 yen for resident taxes.

Low-income households would not fully enjoy the benefits of the tax breaks, because they are exempted from taxes. The government is proposing handouts of 70,000 yen to households that are exempt from paying resident taxes.

Those households are already entitled to 30,000 yen in payouts that began in the spring as a measure to counter the effects of inflation.

The government aims to begin the additional payments soon after the Diet enacts a supplementary budget plan. Officials want to carry out tax cuts in June next year after necessary legal changes.