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Japan : JAPAN may helps to IMF by securing resources to finance corporate tax cuts

June 2, 2014

The International Monetary Fund greeted Prime Minister Shinzo Abe's ambition to reduce Japan's relatively heavy corporate tax rate.

IMF requested Japan for securing financial resources to cover a possible decline in tax revenues amid the country's fiscal woes. According to the IMF, the government should increase its consumption tax rate to 15 percent, following raising it to 10 percent in October next year as planned, to recover the country's fiscal health, the worst among major developed economies.

IMF stated that A corporate income tax cut raises investment and growth, but not sufficiently to make them self-financing, adding further to fiscal consolidation needs. Therefore, compensating revenue and expenditure measures need to be identified."

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Source: TendersInfo (India)

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