Prime Minister Shinzo Abe repeated plans to push forward in reducing Japan’s corporate tax rate and said he’ll seek a larger cut for the fiscal year starting in April than originally envisioned.
Speaking in Parliament on Tuesday, Abe underscored comments he made last week about his government’s efforts to get the corporate tax rate below 30 percent and down to a level that compares favorably with other countries.
“Corporate tax was reduced by 2.5 percent from April and will be reduced by a further 0.8 percent from next year,” Abe said. “In the tax plan for the next financial year, we will add to that without fail and make a further reduction from April next year. We want corporations to channel these funds into investment.”
Japan is grappling with weakness in industrial production and exports that has prompted some analysts to predict that the economy earlier this year entered into its second recession since Abe took office in December 2012.
Also on Tuesday, the finance ministry reported that Japan’s current account was a surplus in September for a 15th consecutive month as low oil prices and a weak yen helped boost income from overseas.
The strength in the current account indicates that companies are continuing to accumulate wealth, which the government wants them to invest in capital equipment and higher wages to spur economic growth.
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