Reuters quotes Japanese government sources, as saying that government is considering offering carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales tax hike planned for next year.
The source noted:
“If the trade talks pile pressure on Japan’s car exports, we would need to consider measures to support the auto industry.”
“One option may be to greatly reduce or abolish the automobile purchase tax.” The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers.
US-Japan are heading into a second round of trade talks on Sept. 21st.
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