The government's key tax panel plans in principle to reject about half of the tax-break requests for designated industries for fiscal 2010, as well as the higher gift tax exemption, ruling bloc lawmakers said.
Through the rejection, the government could secure about ¥300 billion in additional revenue. Of the 198 requests submitted by central government offices last month, the advisory panel to Prime Minister Yukio Hatoyama has decided not to accept 93, the lawmakers said.
Amid a shortfall in tax revenue, the administration is trying to reduce the number of special tax measures for certain industries.
By mid-December, the government is aiming to decide on tax reform plans for the year starting next April. But it remains uncertain whether everything will proceed smoothly because many ministries and agencies, as well as industries, are dissatisfied with the Tax Commission's latest decision.
The rejected requests include those connected with existing preferential treatment for companies investing in the field of information technology and a rise in the gift tax exemption limit for home buyers sought by the Land, Infrastructure, Transport and Tourism Ministry.