Jan 19 The Japan government is finalizing plans
to extend mortgage tax breaks by four years and raise the
maximum deductible amount to 4 million yen ($44,500) for a
10-year period, the Nikkei reported.
Existing mortgage tax relief is due to expire at the end of
this year. The government aims to soften the impact of an
expected fall in home purchases after planned consumption tax
hikes take effect in April 2014 and October 2015, the business
The 4 million yen maximum deduction would apply to
homeowners who move into their dwellings between April 2014 and
the end of 2017, the Nikkei said.
The breaks are to be offered on mortgage balances of up to
40 million yen. The current maximum deduction of 2 million yen
would be extended to the January-March quarter of 2014, the
business daily said.
The Liberal Democratic Party and its coalition partner New
Komeito, and the opposition Democratic Party of Japan are also
expected to approve plans for proposed inheritance tax increases
as early as Monday, the daily reported.
The LDP and New Komeito are backing a proposal to create a
new maximum rate of 55 percent for the portion of inheritances
exceeding 600 million yen ($6.67 million).