Prime Minister Junichiro Koizumi said Friday the government may allow local governments to tax corporations on the basis of business size rather than profits, and the rate could differ by region.
"I believe it is better to give local (governments more) discretion," he said.
At a luncheon at a Tokyo hotel Thursday with House of Councilors members from his ruling Liberal Democratic Party, Koizumi reportedly discussed his plan to allow each prefectural government to independently set rates if the envisioned system of taxing firms is introduced.