Kan pushes corporate tax cut, hits ‘currency war’

Kyodo News

The administration is studying lowering the corporate tax rate, a key feature of tax reform for fiscal 2011, Prime Minister Naoto Kan said Wednesday.

“I ordered (the government and ruling party) to look in the direction of reducing (the corporate tax) along with broadening the tax base,” Kan told the Lower House Budget Committee, but he didn’t make clear the size of the reduction.

The government has been pushing for reducing the corporate tax, which at around 40 percent is one of the highest in the world, out of the belief it would shore up the nation’s faltering industrial competitiveness.

Kan also called on China and South Korea to synchronize their currency policies with other Group of 20 members.