Japan PM Abe calls for prompt debate on corporate tax cut

TOKYO Tue Oct 1, 2013 6:08am EDT

1 of 2. Japan's Prime Minister Shinzo Abe attends a news conference to announce a raise in the sales tax rate at his official residence in Tokyo October 1, 2013.

Credit: Reuters/Toru Hanai

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TOKYO (Reuters) - Japanese Prime Minister Shinzo Abe said on Tuesday that he has asked ruling parties to promptly begin deliberations on cutting the country's corporate tax rate.

"Japan's corporate tax rate is high compared with international standards. This is an issue that needs serious scrutiny in order for Japan to overcome global competition, lure investment from around the world and achieve sustained economic growth," Abe told a news conference.

Abe decided on Tuesday to increase the sales tax to 8 percent from 5 percent next April as planned. He said the government will compile a 5 trillion yen ($50.96 billion)stimulus package in December to help the economy cope with the sales tax hike.

($1 = 98.1250 Japanese yen)

(Reporting by Leika Kihara; Editing by Shinichi Saoshiro)

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Comments (1)
Just another gift from the LDP to its main supporters which are the
very large corporations in Japan. Have to give them a gift since the
rise in the consumption tax will impact their earnings.

Oct 01, 2013 6:27am EDT  --  Report as abuse
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