19:54 02-09-2014
MAIN Russian
About us On-line subscription
KazakhstanTajikistanUzbekistanKyrgyzstanTurkmenistanWorld
POLITICSBUSINESSINCIDENTSSOCIETYCULTURESPORTANALYSISSCIENCE
Japan to cut corporate tax rate below 30% over few years: Abe

Bishkek (AKIpress) - s4.reutersmedia.net Japanese Prime Minister Shinzo Abe unveiled a plan on Friday to cut the corporate tax rate below 30 percent in stages over a few years from the next fiscal year to help pull the economy out of two decades of sluggish growth and deflation.

Investors have been scrutinizing whether Japan can substantially lower the corporate tax rate - among the highest in the world - to spur growth in the world's third-largest economy, Reuters said. 

Abe also needs to strike a delicate balance between stimulating growth and reining in snowballing public debt, twice the size of its $5 trillion economy.

The corporate tax cut is seen as a key issue to be included in a package of broad fiscal and economic policies, which will be finalised around June 27 along with a detailed "growth strategy" of structural reforms.

"Japan's corporate tax rate will change into one that promotes (economic) growth," Abe told reporters, adding that he hoped the lower burden on companies would lead to job creation and an improvement also for private citizens.

He also said the government would make sure that alternative revenue sources are secured to offset a decline in corporate tax revenue, but did not elaborate.

Japan's corporate tax rate is nearly 36 percent for large companies operating in Tokyo, among the highest in the industrialized world. Private-sector members of the government's top economic and fiscal council have proposed cutting the rate to 25 percent eventually to put it in line with international standards.

The finance ministry and ruling party tax panel counter that any revenue lost in the tax rate cut should be offset by bringing in alternative fixed revenues, rather than counting on any increase in tax revenue brought by higher economic growth.

Each percentage point of tax cuts would reduce government revenue by about 470 billion yen ($4.61 billion) a year, according to the finance ministry. At the same time, only 30 percent of all Japanese firms pay corporate income tax, so fiscal hawks want many more brought onto the tax rolls to offset a cut in the tax rate.

Most loss-making firms in Japan are exempted from paying corporate tax and companies can defer losses over several years, making it easier for them to avoid paying taxes.

($1 = 101.9400 Japanese yen)


Twitterfacebookprint
15:30 13.06.2014
LATEST NEWS
17:53 Landmark project upgrades Tajikistan’s Qairokkum hydropower plant17:46 Visit of Chinese President Xi Jinping in Dushanbe to have historical character – China's Ambassador to Tajikistan17:41 Kazakhstani Ambassador to Romania, Germany, Cambodia and Laos appointed17:36 Bastian Schweinsteiger announced as Germany's new captain17:28 Tajikistan reduces projections of raw cotton yield by almost 33%17:23 China accuses British MPs of Hong Kong 'interference'17:22 Inflation growth projected to continue until end of 2014 in Kyrgyzstan17:12 Ambassador of Kazakhstan to Saudi Arabia presents his credentials to King of Saudi Arabia17:11 Navoi Mining and Metallurgy Complex to supply 2,000 metric tons of uranium ore to India17:07 National Bank suggests revision of Banking Code in connection with prospective Customs Union accession17:01 Foreign Minister Abdyldayev, UN Resident Coordinator discuss cooperation issues17:00 Emergency Situations Ministry set to warn population about earthquakes 15 seconds before their beginning17:00 Kazakhstani Government to develop arbitration law, Nazarbayev orders16:48 Introduction of unified information management system in Kyrgyzstan to reduce number of victims from disasters by 10% – Emergency Ministry16:46 Flour shortage not observed in Kyrgyzstan, Kazakhstan still supplies - Antitrust Regulation Agency16:42 Tajik authorities not ready to hold transparent and free elections – Islamic Party's leader16:27 IDB to provide $100 million for construction of modern rural housing in Uzbekistan16:13 Nazarbayev orders Government to adopt Kazakhstan Anti-Corruption Strategy by end 201416:11 Border checkpoints of Kyrgyzstan provided with thermographic cameras to prevent importation of Ebola virus16:10 Turkmenistan's President, Azerbaijan's Deputy Foreign Minister discuss development of bilateral relations
Astana
+17° C
Ashgabat
+35° C
Bishkek
+31° C
Dushanbe
+26° C
Tashkent
+33° C
exchange rates
 
69.59
52.95
8.62
1.42
239.82
182.00
29.63
4.94
6.53
4.97
0.81
0.13
3127.51
2348.02
381.74
65.22
3.75
2.85
0.46
0.08

© AKIpress News Agency - 2001-2014
Use of the AKIpress.com materials must be accompanied by a hyperlink to www.akipress.com
Our address:
Moskovskaya str. 189, Bishkek, the Kyrgyz Republic
e-mail: english@akipress.org, akipressenglish@gmail.com;
Tel/Fax: +996(312)90-07-75