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Japanese PM Announces New Stimulus Package

by Mary Swire, Tax-News.com, Hong Kong

02 April 2009

Japanese Prime Minster, Taro Aso, has ordered his government to begin work on another economic stimulus package.

Mr Aso announced on March 31 that he wishes to coordinate a further package of economy-boosting measures by the middle of April - the third in the past 12 months.

The total cost of the package has not yet been confirmed, although it is expected to include a series of tax cuts and other measures to boost economic growth. In particular, the Prime Minister is looking to stem large rises in unemployment.

In March, Aso put the wheels in motion for an extra package of fiscal measures to be drawn up after figures revealed that the country is facing its biggest economic crisis in over 30 years, with an annual economic contraction of over 5% predicted.

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