The Japanese government and the ruling parties are considering allowing a one-year grace period for corporate tax payment by small and midsize companies affected by fallout from the coronavirus, sources close to the matter said Wednesday.
The planned measure to expand the already available grace system will be part be part of their economic package to be finalized next month aimed at mitigating the impact of the spreading virus.
Currently, a company seeking a one-year grace to stay afloat needs collateral matching the amount of tax owed and is required to pay overdue tax in principle.
The relief plan under consideration will relax requirements for companies applying for a grace payment and will not levy overdue tax, the sources said.
As for consumers, the relief package is expected to include cash payments to households whose income declined for reasons related to the coronavirus epidemic, other sources said. How much such households would receive is not decided, they said.
The package and already announced stimulus measures are expected to total 56 trillion yen ($502 billion) with actual fiscal spending of 15 trillion yen, they said.© KYODO