Japan Government Task Force Wants Corporate Tax Cuts

A government tax panel task force called Wednesday for a corporate tax cut in an attempt to boost foreign investment in Japan despite budgetary constraints, according to a statement presented by its chief Hiroko Ota.

Former economic and fiscal policy minister Ota, head of the group newly created under the Tax Commission to discuss matters related to corporate tax, added in the statement that it is vital to broaden the tax base to prevent financial resources from sharply falling in the wake of such a cut.

The group, which held its first meeting Wednesday, plans to continue studying how a corporate tax cut would affect the Japanese economy and report the outcome to the general meeting of the panel, an advisory body to Prime Minister Shinzo Abe.

The government is aiming to pledge in its longer-term economic and fiscal policy blueprint to be crafted in June to cut the corporate tax rate, as Ota says it is “heavy by international standards” and discouraging foreign firms from operating in Japan.

Ota, who is now a professor at the National Graduate Institute for Policy Studies in Tokyo, also asked Abe’s administration to scale back on some tax break steps and review other taxes such as income tax.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza