ID :
30417
Sat, 11/15/2008 - 23:09
Auther :
Shortlink :
https://oananews.org//node/30417
The shortlink copeid
Sharply increased tax deductions eyed for those with housing loans+
TOKYO, Nov. 15 Kyodo -
The government and the ruling coalition are considering sharply increasing the
amount of income tax deductions to a maximum of 6 million yen over 10 years for
those paying housing loans, as part of efforts to rev up the economy,
government sources said Saturday.
The envisaged increase from the current maximum of 1.6 million yen for mortgage
payers is seen as an incentive to encourage people to buy new homes and spark
slumping housing construction.
Prime Minister Taro Aso has called for expanding tax breaks for those paying
housing loans to the highest level on record.
Under the plan, up to 500,000 yen would be deducted from the income tax
collected by the central government and up to 100,000 yen in addition from the
tax collected by the local government, according to the sources.
The tax panel of the Liberal Democratic Party and its coalition partner, the
New Komeito party, will study the issue based on the plan and include it in tax
reform plans for fiscal 2009 expected to be compiled in December, according to
the sources.
Those moving into new homes in January and onward will be eligible for the
planned tax measures, provided that they are approved by the Diet during a
session scheduled to convene in January.
The plan, however, may need more coordination before being finalized because
the Ministry of Internal Affairs and Communications, which handles issues
involving local authorities, is arguing that the deductible portion from the
local government tax should be kept to a minimum.
Under the plan, homeowners can deduct 1 percent worth of the year-end balance
of loans of up to 50 million yen from income tax payments to the central
government over a 10-year period.
They can also deduct 0.5 percent worth of the balance of loans of up to 20
million yen from income tax payments to the local government over the same
period.
In the current system, homeowners can receive deductions worth 1 percent of the
balance of their loans up to 20 million yen from income tax payments to the
state government from the first to sixth years since moving.
The percentage of deduction will be halved from the seventh to 10th year of
residence, according to the system, which will expire at the end of December.
==Kyodo
The government and the ruling coalition are considering sharply increasing the
amount of income tax deductions to a maximum of 6 million yen over 10 years for
those paying housing loans, as part of efforts to rev up the economy,
government sources said Saturday.
The envisaged increase from the current maximum of 1.6 million yen for mortgage
payers is seen as an incentive to encourage people to buy new homes and spark
slumping housing construction.
Prime Minister Taro Aso has called for expanding tax breaks for those paying
housing loans to the highest level on record.
Under the plan, up to 500,000 yen would be deducted from the income tax
collected by the central government and up to 100,000 yen in addition from the
tax collected by the local government, according to the sources.
The tax panel of the Liberal Democratic Party and its coalition partner, the
New Komeito party, will study the issue based on the plan and include it in tax
reform plans for fiscal 2009 expected to be compiled in December, according to
the sources.
Those moving into new homes in January and onward will be eligible for the
planned tax measures, provided that they are approved by the Diet during a
session scheduled to convene in January.
The plan, however, may need more coordination before being finalized because
the Ministry of Internal Affairs and Communications, which handles issues
involving local authorities, is arguing that the deductible portion from the
local government tax should be kept to a minimum.
Under the plan, homeowners can deduct 1 percent worth of the year-end balance
of loans of up to 50 million yen from income tax payments to the central
government over a 10-year period.
They can also deduct 0.5 percent worth of the balance of loans of up to 20
million yen from income tax payments to the local government over the same
period.
In the current system, homeowners can receive deductions worth 1 percent of the
balance of their loans up to 20 million yen from income tax payments to the
state government from the first to sixth years since moving.
The percentage of deduction will be halved from the seventh to 10th year of
residence, according to the system, which will expire at the end of December.
==Kyodo
