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Japan set to unveil multi‑year stimulus with tax cuts for AI & strategic industries

Japan plans a large fiscal stimulus with tax cuts and incentives across AI and key industries, signalling renewed growth push.
On 8 November 2025, the Japanese government said it will roll out a major economic‑stimulus package that includes tax cuts and investment incentives targeting 17 strategic industries such as AI, semiconductors, ship‑building and defence.
The package — expected to exceed last year’s US $92 billion - aims to make policy more predictable and drive private investment across growth sectors.
Analysts say the move signals Tokyo’s shift toward industrial revitalisation amid global supply‑chain pressure and geoeconomic contestation.