The Japanese government is considering a revision to the fixed asset tax code in order to encourage the removal of dilapidated and abandoned homes.
Currently, the annual fixed asset tax on land is reduced to a sixth of its original level if there is an existing house on the land. This reduction was introduced in 1973 when Japan was going through a period of rapid growth as a means to encourage the conversion of agricultural land into housing. The reduction also applies to empty houses, so demolishing a house would mean a higher tax bill.