Sept 19 Japanese Prime Minister Shinzo Abe has
instructed finance minister Taro Aso to include a two-stage
lowering of corporate taxes in stimulus measures that would kick
in if the consumption tax is hiked in April as planned, the
Nikkei reported, citing sources.
"A drastic corporate tax cut is necessary," Abe told Aso on
Wednesday, the report said, quoting multiple sources.
The first part of Abe's plan is to end a special
reconstruction tax related to the March 2011 disaster one year
earlier than planned, the business daily said.
This 10 percent add-on to the corporate tax is currently
slated for termination at the end of fiscal 2014.
Abe also instructed Aso to set a clear medium- to long-term
plan for bringing Japan's effective corporate tax rate down to a
level on a par with other major nations in fiscal 2015 or
afterward, the Nikkei said.
However, Aso is believed to have expressed reluctance to the
plan saying that ending the reconstruction tax on businesses
could rouse discontent in disaster-hit areas and derail efforts
to halve the nation's primary balance deficit in fiscal 2015,
the newspaper reported.
The two men are expected to discuss the matter again as soon
as Friday, the Nikkei said.
Abe plans to make a final decision on Oct. 1 on whether to
raise the consumption tax to 8 percent from 5 percent as
scheduled, the paper reported.