Japanese Prime Minister Shinzo Abe said Friday that he aims to cut Japan's corporate tax by more than 5 percentage points to below 30 percent within the next few years, local media reported.
Abe's government wants to boost foreign investments in Japan and bolster the country's economy by lowering the effective 30 percent corporate income tax rate, which is much higher than South Korea's roughly 24 percent and Singapore's 17 percent.
"We will make a growth-oriented reform of the corporate tax system," Abe told reporters. He also unveiled that his government will secure financial resources to cover a possible decline in tax revenues, but refrained from specifying the measure.
The incumbent prime minister said the tax policy will be incorporated in the government's new economic and fiscal policy blueprint for fiscal 2015 starting April that year, scheduled to be endorsed by the Cabinet on June 27.