Japan Ruling Camp Adopts FY 2019 Tax System Reform Package
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Tokyo, Dec. 14 (Jiji Press)--Japan's ruling coalition adopted a tax system reform package Friday, featuring bigger tax breaks for vehicle and housing purchases to prevent the economy from weakening due to the planned consumption tax increase.
The measures in the two areas are forecast to reduce 167 billion yen in annual tax burdens.
"We've set considerable amounts of measures to smooth out demand swings expected for housing and vehicles, two main pillars of consumption," said Yoichi Miyazawa, chairman of the ruling Liberal Democratic Party's Research Commission on the Tax System.
"Especially in the area of housing, we've created a system that will benefit low- and middle-income earners who will buy homes in October next year and later," said Makoto Nishida, head of the tax commission of Komeito, the LDP's coalition partner.
The package includes a permanent cut in the vehicle tax, imposed on owners every year, by up to 4,500 yen annually for those who buy vehicles after the consumption tax hike to 10 pct in October 2019.
[Copyright The Jiji Press, Ltd.]