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Japan to cut corporate tax rate by 2% from next fiscal year: paper

Published on Jul 31, 2014 9:58 AM
 
Residential and commercial buildings stand in Tokyo, Japan, on Friday, Dec 18, 2009. Japan's government will lower the corporate tax rate by 2 percentage points from next fiscal year as part of Prime Minister Shinzo Abe's drive to encourage domestic business investment, the Yomiuri newspaper reported on Thursday. -- PHOTO: BLOOMBERG

TOKYO (Reuters) - Japan's government will lower the corporate tax rate by 2 percentage points from next fiscal year as part of Prime Minister Shinzo Abe's drive to encourage domestic business investment, the Yomiuri newspaper reported on Thursday.

Abe has pledged to lower Japan's corporate tax rate, among the highest in the world at above 35 per cent, to less than 30 per cent over several years has part of his economic growth strategy.

The tax cuts, which would start from the fiscal year beginning next April, would gradually bring the corporate tax rate down to around 29 per cent, the Yomiuri reported without citing sources.

The government faces a challenge because it must come up with ways to make up for the revenue lost from the 2 per cent tax cut, which could total around 1 trillion yen, the Yomiuri said.

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