Japan Mulls Greater Tax Breaks to Raise Wages
Tokyo, Nov. 8 (Jiji Press)--The Japanese government on Monday proposed expanding tax breaks for companies that raise employee wages, as part of Prime Minister Fumio Kishida's push to redistribute wealth.
The greater tax breaks were part of a package of measures that the government wants to take to meet Kishida's goal of achieving a virtuous cycle of economic growth and wealth redistribution.
The government will reflect the proposals in an economic stimulus package that it aims to adopt on Nov. 19. Specific measures will be included in the government's fiscal 2021 supplementary budget, the fiscal 2022 full budget and an annual tax reform plan.
The government said tax breaks should be expanded for companies that raise the overall wages of employees including nonregular workers.
Currently, when large businesses raise the wages of new hires by 2 pct or more from the previous year's level, they can deduct 15 pct of that amount from the amount of corporate tax.
[Copyright The Jiji Press, Ltd.]