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Japanese PM Shinzo Abe plans to lower corporate tax rate by 2.5%

Japanese PM Shinzo Abe plans to lower corporate tax rate by 2.5%

TOKYO: One of the highest among major economies, Japan’s government is considering lowering the corporate tax rate by 2.5 percentage points next fiscal year to increase corporate competitiveness.

Shinzo Abe Japanese Prime Minister had been planning to lower the corporate tax rate over several years to around 20 percent from more than 35 percent currently.

Abe wants to make a big cut in tax rate from the next fiscal year starting in April to kick start his economic reform agenda after a comfortable win in a lower house election on Sunday.

Abe’s ruling Liberal Democratic Party will debate tax reform starting on Tuesday and with the aim of completing its tax reform plan on Dec. 30. It is possible that the government could cut the corporate tax rate by more than 2.5 percent in fiscal 2016.