Property tax abatement may be extended

The government is firming up plans to extend the special tax reduction on annual property taxes that applies to new construction. It is hoped that the planned extension would help alleviate the added costs in buying new housing after the consumption tax rate was increased to 10% last month.

The current abatement means that annual property taxes are halved for the first three years following the construction of a detached house, and five years for an apartment. For homes and apartments that meet government guidelines for energy conservation, earthquake-resistance and so on, the reduced taxes apply for five years for a detached house and seven years for an apartment.

The current deadline for the special tax reduction is March 31, 2020.

 Source: Jiji Press, November 23, 2019.

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