A government plan to restrict the tax breaks enjoyed by so-called public-interest corporations has sparked a flurry of protests from some nonprofit organizations that fear it would dampen their civic activities.
A schism has developed even among members of a government panel over the advisability of imposing taxes on corporations of a highly public nature, although there is agreement on the need to tax the groups' undertakings that turn a profit.
There are roughly 26,000 public-interest corporations in Japan, many of which have obtained legal corporate status to gain official approval of their activities, including those promoting social welfare, education and global cooperation.