Prime Minister Shinzo Abe’s administration and the ruling coalition are considering providing income tax relief to unmarried single parents who receive child care allowances, sources said Sunday.
Currently, parents who became single because of divorce or the death of their spouse are eligible for income and resident tax deductions.
Komeito, the junior partner of the Liberal Democratic Party-led ruling bloc, has been seeking to apply the tax deductions to single parents who have never married. But the LDP opposes the measure for fear it would encourage people to stay single.
Support for unmarried single parents is high on the agenda of tax reform discussions for fiscal 2020, which start April 1.
In its fiscal 2019 tax reform discussions, the ruling coalition agreed to exempt unmarried single parents on low incomes from paying resident tax and provide them with increased child care allowances.
At the time, coalition officials left the question of income tax relief to be addressed under fiscal 2020 reform.