The Finance Ministry recommended Wednesday that tax breaks firms receive on five reserve funds be abolished or reduced so their taxable income base can be expanded and overall corporate tax rates reduced beginning in fiscal 1998.

The ruling Liberal Democratic Party’s Research Commission on the Tax System was also told that a small levy of less than 1 percent should applied to indebted firms’ total annual wages so that they, too, will have a minimum tax burden. Companies in the red are not currently obliged to pay corporate taxes.

Unable to view this article?

This could be due to a conflict with your ad-blocking or security software.

Please add japantimes.co.jp and piano.io to your list of allowed sites.

If this does not resolve the issue or you are unable to add the domains to your allowlist, please see out this support page.

We humbly apologize for the inconvenience.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.