* Govt should show timing and target for corporate tax cut
* Govt needs to consider GPIF legal overhaul
* LDP is expected to submit proposals to govt this week
(Adds more details in LDP's draft proposals)
TOKYO, May 20 Japan's ruling Liberal Democratic
Party will urge cutting the corporate tax rate while expanding
the tax base in a bid to make the nation's companies more
internationally competitive, according to draft proposals seen
by Reuters on Tuesday.
The LDP also said the government should lay out the timing
and target of the corporate tax cut to help domestic and foreign
firms in their decisions on new capital investment, employment
and business development, according to the draft.
The proposals are part of a submission the LDP will make as
early as this week to the government for consideration in Prime
Minister Shinzo Abe's "growth strategy" of economic structural
reforms, due in June, a person involved in the process told
Abe's party will propose that the government consider legal
changes to strengthen the governance of the $1.26 trillion
Government Pension Investment Fund (GPIF), the world's biggest.
The LDP draft also calls for adding multiple full-time
committee members to GPIF's investment board to steer a shift
out of Japanese government bonds and into higher-yielding
assets, according to the draft.
The proposals include promoting the creation of "super
regional banks" to promote the consolidation of Japan's 100
Vice Economy Minister Yasutoshi Nishimura told a Reuters
Summit on Monday the government also shared an awareness of a
need for consolidation of regional banks and would want to
expand the support by the public-private Regional Economy
Vitalisation Corporation of Japan.
The former head of Japan's banking regulator also told a
Reuters Summit that consolidation is necessary for regional
banks to survive a climate of dwindling borrowers, as it will
allow them to extend riskier and therefore more profitable forms
In addition, the LDP will propose expanding Japan's
professional baseball leagues to 16 teams from 12 to energise
regional economies and it calls for the government to consider
support measures, the draft proposals said.
(Reporting by Takaya Yamaguchi and Kaori Kaneko; Editing by
Edmund Klamann, William Mallard and Richard Borsuk)