The Japan Federation of Economic Organizations (Keidanren) urged the government on Tuesday to introduce a consolidated corporate tax system in fiscal 2001 to encourage much-needed corporate realignment and raise the nation's industrial competitiveness.
The proposal was included in a package of tax reform proposals made by the nation's most powerful business lobby that coincided with the government's full-scale debates on revising the tax system for the next fiscal year.
Keidanren also called for an urgent review of the inheritance tax levied on those who inherit small and medium-size businesses from family members.
Specifically, it calls for lowering the maximum inheritance tax rate from the current 70 percent to 50 percent to enable aging owners of small firms to smoothly transfer their businesses to family members.
In addition, the group demanded that the tax burdens for transferring corporate assets and shares be reduced to help promote corporate reorganization, particularly in making the switch to holding companies.
To promote the liquidation of real estate, Keidanren called for alleviating tax burdens for real estate transactions.
Keidanren also proposed raising the consumption tax rate from the current 5 percent to finance an increase in state contributions to basic pension payments.