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Economy

Japan weighs longer mortgage deduction as tax hike looms

Extra five years among proposals aimed at sustaining housing demand

Homes in Japan's Niigata Prefecture. Japan is considering a longer mortgage tax deduction to offset an upcoming consumption tax hike. (Photo by Hideki Shinohara)

TOKYO -- Japan is considering letting homeowners take a mortgage tax break for up to five more years from the current 10-year plan, Nikkei has learned, in a bid to keep homebuying demand steady after next year's consumption tax hike.

Purchases of new homes are subject to the 8% consumption tax. The rate is slated to rise to 10% in October 2019, which could spark a flurry of demand ahead of the increase, followed by a drop-off afterward.

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