The ruling Liberal Democratic Party proposed Tuesday around 300 billion yen ($3.03 billion) in tax cuts to invigorate business investment, with Prime Minister Shinzo Abe’s government viewing such investment as a pillar of economic growth, executives of the party’s tax panel said.
The tax reduction plan is expected to be included in an economic stimulus package to be mapped out later this month to mitigate the potential negative impact on the economy of a planned sales tax hike to 8 percent from the current 5 percent next April.
According to the blueprint of the tax change, drafted by Abe’s LDP tax panel, the government would implement measures such as providing tax breaks to companies purchasing and introducing state-of-the-art and more productive equipment by the end of March 2017.
The conventional tax incentives to promote research and development, which will expire at the end of next March, would be extended for three years to March 2017, it also said.
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