Japanese Tax Commission To Scrap Tax Breaks For The Elderly
The Japanese Government
Tax Commission announced on Tuesday that it has decided to scrap a range of
tax breaks for the elderly as part of a sweeping process of tax reform. Under the 'maruyu' scheme
currently in place, Japanese citizens aged 65 or over are exempted from a 20%
tax on interest and yields from bank deposits, postal savings, and public bonds
up to a total of 10.5 million yen. However, the government has said repeatedly
that it would like to encourage the population to employ their money more actively
in an attempt to boost the country's stock market. It is hoped that this latest
move will encourage the elderly to channel more of their savings into stocks
and other financial instruments. Separately, the tax panel
has also announced that it is likely to propose a surtax on companies in order
to compensate for the expected drop in revenue when consolidated or group taxation
is introduced, and the Finance Minister, Masajuro Shiokawa has revealed that
he would like to see gift tax rules for homebuyers relaxed. The government tax panel
is scheduled to finalize proposals for tax revisions in the 2002/03 fiscal year
on Friday. .
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