Japan Considers Tax Reforms to Boost Corporate Capital Spending

The government must consider tax reforms flexibly to help increase companies’ capital spending and boost the Japanese economy, the government’s top spokesman said Monday.

“We need to respond flexibly,” Chief Cabinet Secretary Yoshihide Suga told a news conference, after Prime Minister Shinzo Abe said Sunday he will introduce tax breaks to encourage business investment by manufacturers.

Suga was commenting on whether the government can start drawing up its annual tax reform plans earlier than usual. The Cabinet normally approves such plans in December before submitting them to the Diet.

“The government must play roles in creating an environment in which (Japanese firms) can win in international competition,” Suga added. “We will swiftly draw up effective policy measures for revitalizing the Japanese economy.”

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