Tax Cuts Eyed for Firms Active on Human Resources Investment

Politics Lifestyle

Tokyo, July 24 (Jiji Press)--A Japanese ruling party executive on Sunday unveiled a plan to substantially cut corporate tax for companies active on investing in human resources.

"We want to offer major tax reductions related to human resources investment," Yoichi Miyazawa, chairman of the Liberal Democratic Party's Research Commission on the Tax System, said in a television program.

Miyazawa said that he has instructed related government agencies to work out specifics of the tax cuts so that the plan will be included in the upcoming fiscal 2023 tax system reform package.

Meanwhile, corporate tax will be increased slightly for firms not active on investing in human resources, he said.

In the fiscal 2022 tax system reform, the government expanded tax cuts for companies working to increase wages. Miyazawa pointed to a need to draw up new tax incentives to help companies strengthen their competitiveness, saying, "Without growth, it is difficult for firms to continue raising wages."

[Copyright The Jiji Press, Ltd.]

Jiji Press