Corporate Tax Cut to Finance Postquake Reconstruction

Japan may review a proposed corporate tax cut to finance postquake reconstruction, ruling party executive Katsuya Okada said Sunday.

The ruling and opposition parties may agree to cut the size of the corporate tax reduction to eke out funds for reconstruction efforts, Okada, secretary-general of the Democratic Party of Japan, told reporters here.

Tax reform proposals, now before parliament, include a cut of 5 percentage points in the effective corporate tax rate.

The DPJ and other parties need to discuss how to deal with the tax reform because it is unlikely to win approval from the opposition controlled-House of Councillors, he said.

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