Tuesday, October 1, 2013
Gist Of Japan's Stimulus Package To Counter Sales Tax Hike Impact
TOKYO (Kyodo)--The following is the gist of the economic stimulus package aimed at buffering the economy from a planned sales tax hike next April, approved by the Cabinet of Prime Minister Shinzo Abe on Tuesday.
The stimulus package:
-- is worth 6 trillion yen, including 1 trillion yen in tax cuts.
-- will be funded under an extra budget for fiscal 2013 to be compiled in an integrated manner with the initial budget for fiscal 2014.
-- includes 730 billion yen in tax cuts to stimulate business investment.
-- includes 160 billion yen in tax breaks for companies willing to increase wages.
-- includes 110 billion yen in tax cuts for people who buy homes using housing loans.
-- eyes the end of a special corporate tax surcharge next March, a year earlier than scheduled, that was introduced to fund reconstruction following the March 2011 earthquake and tsunami.
-- will boost infrastructure ahead of the 2020 Summer Tokyo Olympics.
-- will promote public works projects to accelerate reconstruction work and make infrastructure more resilient to natural disasters.
-- will provide 10,000-15,000 yen per person to low-income households.