The new head of Japan’s most powerful business lobby called Tuesday for the government to cut the corporate tax to around 25 percent in stages starting from the next fiscal year to support the global competitiveness of Japanese companies.
Sadayuki Sakakibara, who assumed the chairmanship of the Japan Business Federation, also known as Keidanren, made the request as Prime Minister Shinzo Abe is in final talks with the ruling parties on his latest strategy for economic growth that will be unveiled later this month and likely mention the tax cut.
The tax rate currently stands at around 35 percent for companies based in Tokyo, a level that Sakakibara said is “the world’s highest” and fuels concerns that Japanese firms are handicapped, compared with those based in other major economies such as China, Singapore and Germany.
“I believe (cutting corporate tax) is essential to enhance the international competitiveness of (Japanese) companies…and attract foreign investment,” he said at his first press conference after assuming the post.
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