The government will spell out by mid-December details regarding corporate and individual income tax cuts designed to stimulate sagging consumer spending, International Trade and Industry Minister Kaoru Yosano told major retailers Monday, according to a ministry official.During an hourlong meeting with representatives of the Japan Department Stores Association and Japan Chain Stores Association, Yosano reiterated that his ministry is working to adopt a stimulus package consisting of 10 trillion yen in “pure water” to double living space and revive industries, the official said.With commercial sales declining for a record 17 consecutive months on a year-on-year basis, representatives of both associations expressed concern, saying they have fallen into a consumption slump and have no way out, the official said. The associations specifically urged the government to change the general feeling of unrest by proceeding with measures to boost disposable income and effectively implement financial stabilization legislation.Yosano said the work on tax reduction measures is under way, with the government eyeing a 40 percent effective corporate tax rate, but added that the Tax Commission has not decided how to balance national and local taxes.The associations also asked Yosano to draw up concrete guidelines for the law concerning location of large retail stores that is to replace the Large-Scale Retail Store Law in 2000, in order to reduce the red tape required for opening new stores.

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.