Japan tweaks tax code

16/12/10 15:42 CET

economy

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Japan’s government has approved tax guidelines for the upcoming fiscal year starting next April.

The focus is on reducing the amounts that companies have to pay and raising taxes on the wealthiest Japanese.

The money raised would be used to boost job creation and pay for welfare programmes.

However economists doubt the tax code changes will do much to achieve the government’s goal of ending deflation.

The fundamental principal behind our tax guidelines is that Japan has to escape deflation because it has been a burden on the economy for the past 20 years,” Finance Minister Yoshihiko Noda told a news conference.

“It will require a lot of tough work to meet our spending and debt targets for next fiscal year, but if we don’t then I haven’t done my job as finance minister.”

The government will need to show fiscal restraint in next year’s budget it aims to compile by Dec. 24. Any wavering over spending cuts could cast doubt over Prime Minister Naoto Kan’s management as he struggles with low voter support and signs of revolt within his party.

More about: Economy, Japan, Taxes

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