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Postponement of VAT increase impacts other fiscal reform
Nikkei Online reports on June 2 that the second postponement of the VAT increase to October 2019 is likely to have an impact on other planned fiscal reforms as well.
The government and ruling parties are also investigating postponement of the planned new automobile tax, which was scheduled to be introduced simultaneously with the VAT increase in April 2017. Also, with no VAT-increase next year, the diversified consumption tax rates for foodstuffs is also off the books for the time being. Additionally, the tax-break measure on housing loans, which was meant to support the economy at a time of fiscal increases until June 2019 is presently under consideration for an extension beyond October 2019, the date the VAT increase is planned now.
Source: Nikkei Online, 自動車新税の先送り検討 増税再延期、税制改正に余波 (June 2, 2016)