Japan Press: Govt Plans Lower Tax Hike To Fund Reconstruction

Author: Market News International | Category: News

TOKYO (MNI) – Japan’s government plans to raise Y9.2 trillion
through temporary tax hikes to pay for reconstruction of the
earthquake-hit northeastern region, lowering its initial estimated
target of Y11.2 trillion by seeking other funding sources, newspapers
said Wednesday.

It plans to submit to parliament bills for a Y12 trillion third
disaster-response supplementary budget by the end of October, they said.

The government estimates Y13 trillion in reconstruction costs in
the next five years but needs a total of Y16.2 trillion once other
spending commitments are included, the reports said.

The latest funding plan calls for an extra Y2 trillion in non-tax
revenue from additional sales of government-owned shares in Japan
Tobacco Inc. and energy-related stocks.

The government has already proposed to raise Y5 trillion in non-tax
revenue and spending cuts.

The rest would come from a 10-year income tax hike from January
2013, a three-year corporate surtax starting next April, higher
residency taxes for five years from June 2014, and a tobacco tax hike in
October 2012.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4833 **

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