Japan Ruling Bloc OKs Virus-Linked Tax Relief Package
Newsfrom JapanPolitics Lifestyle
Tokyo, April 2 (Jiji Press)--Japan's ruling Liberal Democratic Party and its Komeito ally reached an agreement Thursday on a package of tax relief measures to mitigate the economic impact of the coronavirus pandemic.
The package, agreed on at a meeting of the two parties' tax panels, includes relaxing eligibility criteria for tax reductions for housing loan borrowers and extending an automobile tax cut.
Under the housing loan tax break scheme, in which a certain percentage of loans outstanding at year-end is deducted from income tax for 13 years, applicants must move into their new homes by December this year. The two parties agreed to extend the deadline for moving in by a year.
A fuel efficiency-related vehicle tax cut, which is slated to expire at the end of September this year, will be kept in place until the end of March 2021.
In addition, small companies facing a year-on-year decrease of 50 pct or more in sales will be exempt from fixed-asset tax payments. The tax will be cut by half for those seeing a sales decrease of 30 pct to less than 50 pct. A city planning tax break will be newly introduced.
[Copyright The Jiji Press, Ltd.]