Japan unveils economic stimulus package

The Japanese government has earmarked ¥370 billion (US$3.89 billion) in a recently unveiled economic stimulus package to boost sales of new, more environmentally friendly cars by one million units this fiscal year. Effective April 10, people replacing cars that are at least 13 years old with new ones are eligible for government subsidies of ¥250,000 (US$2,625). Subsidies are also available for people simply buying new cars that exceed the fiscal 2010 government-set gasoline mileage standard by at least 15%. The stimulus package, which totals an unprecedented ¥56.8 trillion (US$596.6 billion), includes ¥15.4 trillion (US$160.7 billion) in fresh fiscal spending. Prime Minister Taro Aso pointed to solar cells, electric cars and energy-saving home appliances as three areas that hold the key to Japan’s future economic growth. (April 20, 2009)