The leaders of four industry associations on Wednesday asked the ruling coalition to steer clear of a pro forma standard tax, saying it may damage small and midsize firms, the associations said.
Under the pro forma standard, corporate tax is levied on the basis of such nonprofit norms as the number of employees, combined wages, and the size of capital. The method allows tax to be collected from companies that are operating in the red.
The request was made by Nobuo Yamaguchi, chairman of the Japan Chamber of Commerce and Industry, and the heads of the Central Federation of Societies of Commerce and Industry, the National Federation of Small Business Associations, and the National Federation of Shopping Center Promotion Associations during a meeting with the top policymakers of the three ruling coalition parties.