The business community should cooperate and accept a broadening of the corporate taxation base in return for a reduction in the actual taxation rate, Finance Minister Hiroshi Mitsuzuka said Sept. 2.

The nation’s efforts to correct its strained finances make it necessary to look for new sources of revenue to make up for the loss of 400 billion yen for every percentage point the corporate tax rate is cut, Mitsuzuka said in a speech in Tokyo. The actual tax rate for standard companies stands at 37.5 percent, and business leaders are demanding the government reduce that by 2.5 percentage points in its tax reform package for fiscal 1998, which is expected to be drawn up by year’s end.

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