Japan\u2019s government is considering a plan for the expected income falls at local governments from a proposed consumption tax cut to be fully covered with special tax revenue grants from the state, sources said Saturday.<\/p>\n
The national government is expected to present the plan at a meeting with local governments to be held shortly, along with an idea to use ordinary tax revenue grants to compensate local governments for necessary expenses linked to a proposed income-pegged benefit program.<\/p>\n
The special grants program is designed to offset temporary dips in local government tax revenues due to changes in central government policies.<\/p>\n
For the cash benefit plan, the national government will propose that it shoulder at least two-thirds of necessary expenses and that the remainder be split evenly between prefectural governments and municipalities.<\/p>\n
Japan aims to introduce the benefit program in earnest in fiscal 2029. As a transitional measure until then, the national government is seeking to reduce the consumption tax rate on food from 8% to 1% for two years from fiscal 2027, which starts next April. The benefit program is planned to be partially introduced to pay out the equivalent of the remaining 1% tax rate to effectively lower the food consumption tax to zero for the two years.<\/p>\n
The government and the ruling bloc aim to adopt a tax system reform package including the consumption tax cut plan around the middle of this month. The government plans to submit a bill on the tax reduction to an extraordinary session of parliament expected to be convened this autumn.<\/p>\n","protected":false},"excerpt":{"rendered":"Japan\u2019s government is considering a plan for the expected income falls at local governments from a proposed consumption…\n","protected":false},"author":2,"featured_media":86500,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[5034,8,1549],"class_list":["post-86499","post","type-post","status-publish","format-standard","has-post-thumbnail","category-japan","tag-consumption-tax","tag-japan","tag-taxes"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/86499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/comments?post=86499"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/86499\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media\/86500"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media?parent=86499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/categories?post=86499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/tags?post=86499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}