The National Federation of Small Business Associations said Monday it will oppose the government’s plan to introduce a new tax levied on companies based on their size, such as capital, and not profits.

The federation is expected to adopt a resolution on opposition to the tax at an annual convention to be held in Saitama Prefecture on Oct. 17, federation officials said.

The resolution will criticize the tax, saying it threatens to deal a blow to business investment, sap the economy’s vigor and thus adversely affect employment, the officials said.

The tax will also increase the burden on smaller companies and hinder the growth of startup ventures, they said.