Hoping to spur the sluggish real estate market, the Japan Federation of Economic Organizations (Keidanren) on July 23 urged the government to abolish or review various land-related taxes.
In its proposal on land policy, Keidanren stated that the government must promote land transactions by reviewing the national tax system and its regulations. The Keidanren proposal cited the steady decline in land prices since 1991, when the asset-inflated bubble collapsed, in calling for lower taxes.
It wants the land-holding tax abolished and taxes on property transfers reduced. “It is unlikely that Japan will have another bubble economy, even if various restrictions are removed,” said Masahiko Furukawa, Keidanren vice chairman and chairman of Mitsubishi Chemical Corp. The proposal also says that various property restrictions, such as building-to-land ratios and building height limits, should be eased, especially in urban areas.