Japan's Government Pledges Further Tax Breaks To Fix Economy

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

22 January 2004

Japan’s senior economic policy makers nailed their colours to the mast after returning from the winter break this week by promising to extend certain tax cuts in a bid to restore the nation’s economic fortunes.

Commencing a new 150-day parliamentary session, Finance Minister Sadakazu Tanigaki told the assembly that the government plans to extend tax breaks given to assist home buyers, in addition to offering further incentives to help investment in the stock market and real-estate sectors.

"In order to build the bridge from economic recovery to sustained growth, it is important to push for a comprehensive policy of revitalizing the economy and building a sustainable fiscal base," Tanigaki’s prepared speech emphasised.

Members of parliament will, in the coming weeks, debate and approve the national budget and tax measures for the next fiscal year beginning on April 1st. The government has pledged to bring the nation’s public accounts at both local and national level into surplus within a decade.

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