Japan may cut corporate tax
Norio Sasaki, a member of Japan’s government panel subcommittee on corporate tax reform, said that Japan could cut its corporate tax rate as early as next fiscal year by 2-3%.
Japan’s effective tax rate of about 36% is the second-highest in the G7 after the US and compares with levies of about 24% in South Korea and 23% in the UK.
The nation’s Prime Minister Abe pledged to pursue corporate tax reforms earlier this year, part of his Abenomics drive to revive the national economy. In June Abe will outline further measures to improve business conditions in Japan. Note that the tax cut will be accompanied by a rise in revenue from other sources to avoid worsening the government’s fiscal position which is already in a very bad shape.