Japan to Continue Extension of Housing Loan Tax Cut
Newsfrom JapanPolitics Lifestyle
Tokyo, Dec. 2 (Jiji Press)--Japan’s government and ruling bloc are discussing continuing a special extension of a tax cut for housing loan borrowers, in a bid to support demand battered by the novel coronavirus epidemic.
The two sides are in the final phase of discussions to move back the deadline for the special measure for up to two years, so that such borrowers will be eligible if they move into the homes bought with the loans by the end of 2022, sources said.
The tax cut program deducts an amount equivalent to 1 pct of borrowers’ year-end loan balances mainly from their income tax payments for up to 10 years.
The maximum period is being extended to 13 years as a special measure to cut the negative impact of the October 2019 consumption tax hike on the economy.
This special extension applies to those moving into their new homes by the end of this year in principle and by the end of 2021 if related construction work is being delayed due to the epidemic on condition their contracts were concluded by the end of September this year for custom-made houses or by the end of last month for built-for-sale homes.
[Copyright The Jiji Press, Ltd.]