Japanese Government Prepares Corporate Tax Cut Intended to Boost Wages

The government plans to specify the proposed end of a special corporate income tax surcharge for reconstruction from the 2011 quake-tsunami disaster as a measure aimed at prompting companies to boost wages, officials said Monday.

In a draft of its economic stimulus package to be released Tuesday to buffer the economy from a sales tax hike next April, the government says the de facto corporate tax cut through the abolition of the surcharge one year earlier than scheduled will help firms “take one step toward continuous wage increases,” one of the official said.

Prime Minister Shinzo Abe’s administration will also pledge in the package that the Ministry of Economy, Trade and Industry will survey wages at major corporations and disclose the results, the officials said.
Meanwhile, a separate surcharge on individual income tax will be retained as its end would hamper the government’s efforts to rebuild the areas ravaged by the March 2011 disaster, the officials added.

via Mainichi

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