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 iOS 8 apps and features: eight iPhone settings you need to look at after you install the update
- 2 Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
- 3 'F*ck it, I quit': TV reporter Charlo Greene quits live on air in spectacular fashion
- 4 Scotland could still declare independence – even without referendum, says Alex Salmond
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Rihanna 'nude photos' claims emerge on 4Chan as hacking scandal continues
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
Khorasan: Muhsin al-Fadhli - the man leading a terror group more feared by US officials than Isis
'F*ck it, I quit': TV reporter Charlo Greene quits live on air in spectacular fashion
Alicia Keys leaks nude photo 'to create a kinder and more peaceful world'
Scotland could still declare independence – even without referendum, says Alex Salmond
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
£300 - £350 Per Day: Clearwater People Solutions Ltd: Pharmaceutical Computer ...
£70 - £90 per day: Randstad Education Birmingham: Higher Level Teaching Assist...
£50 - £80 per day: Randstad Education Birmingham: Randstad Education is the UK...
£400 - £450 Per Day: Clearwater People Solutions Ltd: Our client is currently ...