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Japan’s Ruling Party Bring $3 Billion Tax Cut Proposal

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.

via Mainichi [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
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
Alfonso Esparza

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