Jan 19 (Reuters) - 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 daily reported.
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).