TOKYO (Thomson Financial) - The Japanese government and ruling coalition will not include proposals on a reduction in the effective corporate tax rate or on a major overhaul of the personal income tax structure in the year to March 2009 reforms, the Nikkei reported at the weekend without citing sources.
Japan's effective corporate tax rate now stands at 40 percent.
Due to difficulties in securing a stable source of funding to allow a tax cut, the government decided not to propose a reduction corporate tax, the newspaper said.
As for a proposed reorganization of the structure for individual income tax, the Ministry of Finance and others had called for changes to rules on deductions for spouses and other dependents, according to the report.
(1 US dollar=114.21 yen)
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