On 14 December 2018, the Liberal Democratic Party released the outline of 2019 Tax reform. It unveiled stimulus measures to ease impact of Japan’s next consumption tax hike. The government will raise the consumption tax to 10 percent from 8 percent next Oct. 1, which could hurt the economy if it causes a swing in demand before and after.
The tax breaks target those who buy cars after the hike kicks in. Automobile tax, which is imposed on car owners, will be cut by 4,500 yen. Tax breaks on mortgages will be extended from 10 years to 13 years for those entering a home purchase contract and moving into their new housing between October 2019 and the end of 2020. Tax deduction will be given by 1% of the loan balance for 10 years, 2% of house construction price for addition 3 years.