Wednesday, October 2, 2013
Corp Tax Cut, Deregulation On Business Chiefs' Wish List
TOKYO (Nikkei)--The effective corporate tax rate should be reduced sooner rather than later, corporate leaders said in a survey conducted Tuesday by Nikkei Inc.
Despite widespread calls from the business community for a lower corporate tax rate, the government effectively delayed such a step by stating "it would quickly launch such discussions" later on.
The tax rate "should be lowered at a timing that isn't too late," said JX Holdings Inc. (5020) President Isao Matsushita. Fujifilm Holdings Corp. (4901) Chairman Shigetaka Komori also urged swift action by noting that "Japan's effective corporate tax rate in the mid-30% range is still high compared with other developed nations."
Others called for deregulation and additional tax reforms to help counter the effects of the consumption tax hike taking effect in April. "The automobile acquisition tax and consumption tax represent double taxation," said Suzuki Motor Corp. (7269) Chairman and Chief Executive Officer Osamu Suzuki, arguing that the former should be eliminated.
Meanwhile, McDonald's Holdings Co. (Japan) (2702) Chairman and CEO Eiko Harada noted the importance of "having the government promote conditions that enable companies to expand employment."
As for government pressure on the business community to raise wages, "we hope to pursue pay hikes," said Obayashi Corp. (1802) President Toru Shiraishi. But most of the business leaders said firms should make such decisions on their own based on their individual circumstances.
(The Nikkei, Oct. 2 morning edition)