TOKYO (REUTERS) - Japanese Prime Minister Shinzo Abe is considering a corporate tax cut as a way to offset the potential economic drag of a planned two-stage hike in the sales tax, the Nikkei economic daily reported on Tuesday, citing government sources.
The prime minister has called for a study on lowering the corporate tax rate, one of the highest in the industrial world, as a way of attracting foreign investment, they added.
Mr Abe, who is wavering on whether to proceed with the scheduled tax hikes, has instructed the government to hold meetings with business leaders and academics later this month to assess the impact on the economy.
A decision on whether or not to raise the sales tax is due in September or October. Should Mr Abe decide to proceed, he may propose a corporate tax as well, the sources said.