The ruling coalition approved Friday a tax reform package for fiscal 2019 starting in April that gives consumers greater incentives to buy homes and cars, in an attempt to underpin demand after a consumption tax hike slated for October next year takes effect.
Prime Minister Shinzo Abe's Liberal Democratic Party and its coalition partner Komeito signed off on a draft of the package, which will be the basis for legal revisions to be submitted to the ordinary Diet session beginning in January.
Economists have warned that raising the consumption tax from the current 8 percent to 10 percent could cause a large drop in demand, especially for big-ticket purchases.