Japan May Put Corporate Tax Cut on Hold

Japan may consider suspending a plan to cut the nations 40% tax rate for businesses in an effort to secure funds to rebuild areas ravaged by the March 11 earthquake, reports the Wall Street Journal.

 

The newspaper reports that government officials have signaled over the past few days that the government may delay the timing of a planned five-percentage-point cut to the corporate tax rate, which is higher than most of Japan's major export competitors, including South Korea.

 

While Japanese Prime Minister Naoto Kan isn't considering raising taxes to finance reconstruction in quake-hit northern regions, he says that "every possibility" needs discussing, says the Journal.

 

Citing a recent opinion poll by Japan's Kyodo News agency, the Journal says that that 67.5% of people surveyed supported a temporary tax increase to raise money for reconstruction measures.

 

 

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