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Kan eyes widening corporate tax base.

TOKYO, July 4 Kyodo

Prime Minister Naoto Kan said Sunday he wants to consider expanding the corporate tax base in parallel with a proposed cut in corporate taxes.

The premier made the remarks during an appearance on a Fuji Television program, apparently with a review of preferential taxation on some industries in mind.

The remarks were also thought to be aimed at countering arguments that Kan's Democratic Party of Japan-led government is tilting toward doubling the 5 percent consumption tax rate to cover the revenue shortfall that would result from corporate tax cuts.

A possible rise in the consumption tax rate is a major issue for the July 11 House of Councillors election, with the DPJ and the main opposition Liberal Democratic Party calling for a hike to fix the nation's tattered public finances.

Reiterating the need to lower corporate taxes as a means to boost Japanese companies' international competitiveness, Kan said that even if the corporate tax rate declines, tax revenue will be secured to some extent by a broadened tax base.
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Publication:Japan Policy & Politics
Article Type:Television program review
Date:Jul 6, 2010
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