Japan's ruling Liberal Democratic Party is recommending tax breaks on car purchases in efforts to reduce the impact of a looming sales tax increase in 2019, Reuters reported.
The planned measures come as the government prepares to increase the sales tax to 10% from 8% in October 2019. The proposed auto tax breaks also come amid threats from the U.S. of higher tariffs on Japanese and European car imports, the Dec. 14 report said.
Under the LDP's proposed annual tax code revisions, the automobile tax will be reduced by ¥4,500 for each car unit purchased after the sales tax hike takes effect late next year. The ruling party is also proposing to extend mortgage tax breaks to 13 years from 10 years, applicable to home buyers entering a contract and moving into their new properties between October 2019 and 2020-end, according to the report.
The proposed tax revisions need parliament's approval before the new fiscal year starts in April 2019.
As of Dec. 13, US$1 was equivalent to ¥113.67.