Japan to Curb Tax Rise on Commercial Land

Politics Lifestyle

Tokyo, Dec. 7 (Jiji Press)--The Japanese government and ruling camp plan to halve an expected rise in fixed property tax on commercial land whose prices have risen, sources familiar with their discussions said Tuesday.

The plan will be included in the ruling camp's annual tax system reform proposals for fiscal 2022, which starts in April next year, the sources said.

The fiscal 2021 reform included a special measure that keeps fixed property taxes unchanged for all land with higher prices to cushion the economic impact of the COVID-19 pandemic. The ruling camp plans to remove the measure in fiscal 2022.

Fixed property taxes are calculated based on the standard taxable value of land. When land prices go up, 5 pct of the latest assessed value of land will be added to the previous year's standard value. The ruling camp aims to limit the addition to 2.5 pct.

If the special measure is lifted in fiscal 2022, the tax burden is expected to increase by about 110 billion yen. The envisaged new measure is estimated to lower the increase to some 60 billion yen, the sources said.

[Copyright The Jiji Press, Ltd.]

Jiji Press