Tokyo, Sept. 8 (Jiji Press)–Japan’s Financial Services Agency plans to seek a tax relief measure aimed at facilitating bank lending to small businesses amid the prolonged coronavirus epidemic, Jiji Press learned on Tuesday.
The possible measure for the next fiscal year will allow financial institutions to handle some of their loans to small firms as losses, depending on increases in the loans, informed sources said.
The move comes as the number of coronavirus-related business failures is increasing despite the government’s funding support measures.
The planned measure is expected to ease tax burden on private financial institutions and thus make it easier for them to extend loans, the sources said.
The FSA is also eyeing an expansion of business succession-related tax measures as an increasing number of companies choose to go out of business in the coronavirus crisis.