The ruling coalition approved a tax reform package for fiscal 2021 on Thursday with planned extensions of tax breaks for home and car purchases to underpin the pandemic-hit economy.
Prime Minister Yoshihide Suga's Liberal Democratic Party and its junior coalition partner, Komeito, also aim to encourage the private sector to work toward carbon reduction and digitalization through revisions to corporate taxation.
With the reform package, tax revenues will fall between ¥50 billion and ¥60 billion on the national level and ¥4 billion at local levels, Akira Amari, head of the LDP's tax panel, told a news conference later in the day.