Japan PM Kan orders 5 percentage point corporate tax cut
Japan’s prime minister on Monday ordered cabinet ministers to lower the corporate tax burden by 5 percentage points from the fiscal year starting in April in a bid to improve the competitiveness of firms in the country.
The cut in the effective tax rate for Japanese companies, which is higher than most major economies at around 40 percent, is part of the Democratic Party-led government’s overhaul of the tax code that will form the basis for compiling the 2011/12 state budget due on December 24.
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