1,000 pounds pa tax gift for Japanese
Wednesday 09 February 1994
The Prime Minister, Morihiro Hosokawa, said he expected 'substantial effects' from the tax cuts, which will give an average family an extra pounds 1,000 'to meet expectations both at home and abroad'. Earlier, a compromise over the tax issue was reached when the government, under pressure from the Socialist Party, agreed to defer for a year the unpopular decision on raising sales tax to balance the income-tax cut.
Japan has been pressed by its trading partners to boost its economy so that it will buy more imports to offset its huge trade surplus.
Of most concern to Tokyo has been mounting criticism from the US and one of the main impetuses behind the timing of yesterday's package is a planned visit by Mr Hosokawa to Washington this weekend.
It has become customary for the government to agree on a big spending package or similar conciliatory gesture in advance of each summit meeting with the US President. And with US Congressmen again threatening trade sanctions, the need to appear conciliatory is paramount: on Monday the Finance Ministry in Tokyo said that the surplus for the last calendar year had risen to a record dollars 141bn ( pounds 94bn).
In addition to the tax cuts, the government will increase spending on public works and further subsidise loans to small businesses and loans for public housing. Earlier in the day Mr Hosokawa apologised for the precipitate way in which he first announced the tax-reform plan last week; in Japan, decisions are expected to be made only when a consensus has been achieved in advance: the idea of a government leader steering government policy on his own amounts to dangerous heresy.
Under the tax-cut scheme, a family of four with an average income of pounds 48,500 will see its annual income and local- tax bill of pounds 4,850 reduced by pounds 970.
- 1 Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
- 2 A politically correct lefty goes to see Top Gear live – you'll probably believe what happened next
- 3 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 5 Snoop Dogg on why he doesn't regret displaying misogyny towards women
Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
Woman accidentally shoots herself in the head while posing for a selfie
How China's richest man Li Hejun lost $15bn in an hour - and made a fortune
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Snoop Dogg on why he doesn't regret displaying misogyny towards women
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£35 - 40k + Benefits: Guru Careers: We are seeking a Software Developer (JavaS...
£18000 - £23000 per annum + Commission: SThree: As a Trainee Recruitment Consu...