As part of efforts to prop up consumer spending when the consumption tax is raised to 10 percent in October 2019, the government is considering such measures as premium merchandise coupons and a reward point system for building or refurbishing homes, it has been learned.
Together with a point-reward scheme for cashless payments -- which was already under consideration -- the newly mulled steps are expected to be central elements of the efforts to ease the impact of the tax increase.
The premium coupons would enable consumers to purchase goods worth more than the vouchers' cash value. For instance, a voucher purchased for 10,000 yen could be used to buy goods priced over 10,000 yen. The government is currently working to craft a specific system in which public entities such as local governments issue the coupons and the central government covers the gap between the coupons' nominal value and the actual price of the goods purchased with the coupons.
In the point system scheme for cashless payments, consumers would be refunded 2 percent of their purchases via credit card companies and other entities if they use cashless payment methods such as credit cards. The government believes that small and midsized shops without cashless payment devices, and elderly people without credit cards, would find it easy to use and take advantage of premium coupons.
The government also aims to revive a previous system to reward new-home purchases and home refurbishments with points that are redeemable for vouchers and other items. Specifically, the government will consider extending the scope of the point system for energy-efficient houses -- which was implemented in 2015 -- to such buildings as barrier-free homes for the elderly and houses with high resistance to earthquakes.
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