Even though the Japanese fiscal year is underway for less than 6 months, the Japanese government and its ministries have already started this month to publicize their proposals for next year. Discussions during the last months were dominated by the decision of the Abe government to again postpone the planned increase of the consumption tax to March 2019. This decision is also having its impact on the introduction of other fiscal measures which were planned. Many of the fiscal proposals put forward deal this month deal with the government’s ambition stimulate economic growth by putting more women to (full-time) work and to create a better work-life balance for Japanese families. (And in the background the Cabinet’s desire for more Japanese babies to stem the population decrease.) Also measures enabling elderly to remain economically active, increase productivity and stimulate tourists to spend more while in Japan are proposed.
A round-up of the main proposals announced thus far:
The proposals will be subject to discussions with the Cabinet and the ruling coalition until the end of the year when the tax reform bill for 2017 will go to parliament. JTPP Helpdesk will continue to monitor the discussions and report in this website.
Sources: 働き方改革、税で後押し 仕事・育児両立促す(Japanese); 成長底上げへ生産性向上 税制改正要望