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Cabinet to hike tax burden by ¥980 bil.
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The Cabinet led by Prime Minister Yukio Hatoyama adopted Dec. 22 a set of tax reforms for fiscal 2010 that would increase the burden on taxpayers by a total of around ¥980 billion a year.
The plan has the government maintaining the current gasoline tax rate, abolishing deductions for families with young dependents and raising the tobacco tax. The tobacco tax hike is expected to raise the retail price of a pack of cigarettes by ¥100. The government estimates this will bring in an additional ¥120 billion a year.
The plan contrasts with the Democratic Party of Japan's (DPJ) election pledges to reduce taxes to spur economic growth, which could further hurt government popularity.
Meanwhile the government will start providing a total of more than ¥2 trillion in allowances for households with young children. (The Japan Times)
税制改正え増税規模は9800億円に
政府は12月22日夜の臨時閣議で、2010年度税制改正大綱を決定した。国と地方を合わせた増税規模は平年ベースで9800億円に上る。
Shukan ST: January 1, 2010
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