CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. METI Sets Out Japanese Tax Reform Proposals

METI Sets Out Japanese Tax Reform Proposals

by Mary Swire, Tax-News.com, Hong Kong

02 September 2010


After a period of consultation with industry, the Japanese Ministry of Economics, Trade and Industry (METI) has incorporated significant green elements in its tax strategy for 2011 as well as proposals designed to make business taxation more competitive internationally.

The main planks of METI’s tax strategy include:

  • A reduction of the corporate tax rate, to make it more comparable with competitors, starting with a 5% cut;
  • Continuation of reduced tax rates for SMEs;
  • Environmental taxes, especially taxes on fossil fuels;
  • Higher capital allowances on renewable energy equipment;
  • Business incentives for eco-friendly technology, such as rechargeable lithium-ion batteries and low-energy light-emitting-diode lighting;
  • Reductions on certain import duties on key raw materials such as naphtha as feedstock for petrochemical products and coal for production of iron, steel and cement;

METI had until now opposed ministry of environment calls for higher fossil fuel taxes, because of the effect on the economics of oil refineries and utilities. Its advocacy of investment in a large-scale experiment involving a "smart grid" power transmission network, to enhance the viability of fluctuating renewable energy generation, such as wind power, is further evidence of METI’s change of heart.

TAGS: environment | tax | economics | corporation tax | environmental tax | small and medium-sized enterprises (SME) | tax rates | carbon tax | Japan

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »