Japanese Government Publishes Fiscal Stimulus to Offset Rise in Consumption Tax

The government on Monday unveiled an outline of fiscal measures it hopes will bolster Japan’s economy after next year’s consumption tax increase.

The measures, which include tax cuts for car owners and rebates on some cashless purchases, will account for roughly 2 trillion yen ($18 billion) of the state budget for the fiscal year starting next April.

Prime Minister Shinzo Abe confirmed last month that the government will follow through on its plan to raise the consumption tax from the current 8 percent to 10 percent in October 2019, promising “extraordinary measures” to keep domestic demand from swinging wildly before and after the change.

Low-income households or those with children aged 2 and under will be eligible to use shopping vouchers with enhanced purchasing power. The vouchers, to be issued by municipal governments, would, for example, be available for 20,000 yen but be worth 25,000 in goods and services when used at local stores.

via Mainichi

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