Business / Economy

Overview of tax reform policies


Reduce taxes on daily necessities such as food in line with the consumption tax hike to 10 percent scheduled for October 2015, but specific timing is left vague.

Aim to reach conclusion on which items to make subject to the reduced levy in tax reform outline for fiscal 2015.

Raise the tax on ownership of minicars with engine displacement up to 660cc.

Cut the vehicle acquisition tax levied at the time of purchase.

Increase taxes on high-income salaried workers in two stages from 2016.

End special corporate tax surcharge introduced to fund reconstruction work following the March 2011 earthquake and tsunami one year earlier than scheduled at the end of next March.

Introduce tax breaks to invigorate capital spending and research and development in “strategic special zones,” which the government plans to establish to attract more people and investment from home and abroad.

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