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.
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