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Taxes not central to LDP’s economic stimulus plan>

The second set of economic stimulus measures planned by the ruling Liberal
Democratic Party will probably focus on such issues as using more funds
from the government fiscal investment and loan program rather than detailed
tax deduction proposals, party officials said Wednesday.

A senior member of the LDP’s Research Commission on the Tax System said
after the day’s panel meeting that any specific reductions or tax breaks
could only be considered after more concrete tax revenue projections for
the next fiscal year come out in early December. Actual tax revisions are
most likely to be determined in mid-December, but there will be enough time
to consider steps that would allow some of the changes to take effect
beginning in January, before the necessary law revisions clear the Diet, he
said.

LDP leaders had hoped to draw up a followup pump-priming plan to
supplement the package of mainly deregulation measures released earlier
this month. The package was largely criticized for being too vague and
ineffective in the short-term. The tax revisions demanded by the LDP
include corporate tax rate reductions, elimination of securities
transaction and brokerage taxes, abolition or suspension of the landholding
tax and a wide range of income tax deductions to help offset child-rearing
and education expenses.

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