Japan Eyes Enhancing Tax Breaks for Firms Raising Wages

Politics Lifestyle

Tokyo, Nov. 4 (Jiji Press)--The Japanese government and ruling camp will start full-fledged talks on enhancing tax breaks for companies raising wages.

Prime Minister Fumio Kishida has repeatedly expressed his eagerness to give tax benefits to companies that are active on wage hikes, since before taking office on Oct. 4.

The business world, however, questioned the effectiveness of the expansion of the corporate tax break program, saying that it would still be difficult for companies to raise wages unless Japan achieves economic growth. The existing corporate tax breaks have failed to boost wages markedly.

The government will discuss the matter with the ruling camp of the Liberal Democratic Party and Komeito and compile an outline of fiscal 2022 tax system reform measures by year-end.

"We'll realize economic growth and let each and every person in the country feel the fruits of the achievement through increases in their salaries," Kishida told a press conference on Monday, reiterating his plan to drastically enhance the corporate tax benefit program.

[Copyright The Jiji Press, Ltd.]

Jiji Press