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Japan eyes flexible tax reforms to boost capital spending

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(Globalpost/GlobalPost)

The government must consider tax reforms flexibly to help increase companies' capital spending and boost the Japanese economy, the government's top spokesman said Monday.

"We need to respond flexibly," Chief Cabinet Secretary Yoshihide Suga told a news conference, after Prime Minister Shinzo Abe said Sunday he will introduce tax breaks to encourage business investment by manufacturers.

Suga was commenting on whether the government can start drawing up its annual tax reform plans earlier than usual. The Cabinet normally approves such plans in December before submitting them to the Diet.

"The government must play roles in creating an environment in which (Japanese firms) can win in international competition," Suga added. "We will swiftly draw up effective policy measures for revitalizing the Japanese economy."

Abe told a television program on Sunday that he wants to add to Japan's new growth strategy a plan to help companies introduce new production facilities or equipment with fresh capital spending.

==Kyodo

http://www.globalpost.com/dispatch/news/kyodo-news-international/130610/japan-eyes-flexible-tax-reforms-boost-capital-spending