Several members of the government’s Tax Commission voiced opposition Friday to Finance Ministry suggestions that a national tax be levied on corporations that are in the red, saying there is no logical reason to do so, the commission’s head said.

Hiroshi Kato, chairman of the blue-ribbon panel, said more commission members are against the idea than supportive of it, stressing that the taxation of red-ink companies should only be done at the local level. Because these firms use roads and facilities built by municipal governments, it is understandable that they should pay local taxes even though they have logged pretax losses, Kato explained.

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