Japan Passes Bill to Secure 800 B. Yen to Cut Tax Hike Impact

Politics

Tokyo, May 17 (Jiji Press)--Japan's parliament Friday enacted a bill to utilize 800 billion yen reserved at Deposit Insurance Corp. of Japan to take steps to cut the impact of a planned consumption tax hike.

The House of Councillors, the upper chamber of the Diet, approved the bill to revise the law for strengthening the banking system early. The bill cleared the other chamber, the House of Representative, last month.

The revised law allows the government to dip into the corporation's retained earnings to secure financial resources for measures under the fiscal 2019 budget to mitigate the negative effects of the October tax hike.

The measures, worth some 2 trillion yen in total, include a program to provide rebates to shoppers who make cashless purchases.

Retained earnings at the corporation include proceeds from the sale of shares it acquired when it injected capital into fragile banks.

[Copyright The Jiji Press, Ltd.]

Jiji Press