Shoichiro Toyoda, chairman of Japan Federation of Economic Organizations (Keidanren), on July 14 urged government officials to take a positive view on reducing corporate taxes, arguing that a cut would eventually vitalize corporate activity.
“Corporate taxes are 50 percent in Japan and 40 percent in other countries,” Toyoda told a news conference. “It is hoped that Japanese taxes will gradually come close to those in other countries. “If corporate taxes are cut, companies would be revitalized, and the income of the companies would grow. And, as a whole, tax revenues would also increase.”
Concerning the official discount rates, Toyoda mentioned that the current low discount rates in Japan should be corrected to strike a balance with those in other countries. Toyoda also said the level of the economic recovery differs from sector to sector.