The government is considering an income tax cut of ¥40,000 ($268) per person and cash handouts of ¥70,000 to low-income and elderly households as part of temporary inflation-relief measures, sources familiar with the plan said Tuesday.

Prime Minister Fumio Kishida, who places priority on wealth redistribution, has instructed ruling coalition executives to work out details of the economic package that he hopes to formalize on Nov. 2, including how to realize income tax cuts.

Legislation will be required to change the current tax system, making it likely that Japanese households, already reeling in the rising cost of living, will start feeling the benefits around next summer at the earliest.