Japan Considers Scrapping Planned Corporate Tax Reduction
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Japan’s ruling party is considering abandoning a proposed corporate-tax cut and boosting levies on individuals to help pay for earthquake reconstruction and reduce the need to step up bond sales.
Prime Minister Naoto Kan said today more than one spending package may be needed for rebuilding, and all revenue options will be debated. Vice Finance Minister Fumihiko Igarashi said yesterday the government may scrap a planned 5 percentage-point reduction in company tax rates, and the head of the party’s fiscal committee last week advocated a sales-tax increase.