Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

• The issue regarding corporation tax

(Abridged)

REPORTER: I have a question regarding corporation tax. Following the Cabinet meeting this morning, Minister Amari stated during his press conference that the Government should implement substantive tax cuts ahead of schedule. What is your view of this?

CHIEF CABINET SECRETARY SUGA: First of all, we have already decided that the first phase of the reduction of the corporate tax rate will start next fiscal year and that the corporate tax rate will be decreased to the 20-29% range over the next several years. We will determine the timing and the revenue sources to fund the tax rate reductions by the end of the year, in accordance with the Basic Policies for the Economic and Fiscal Management and Reform that was unveiled in June of this year.  

REPORTER: While I understand that the Research Commission on the Tax System of the Liberal Democratic Party will be finalizing the tax system framework, can you tell us the overall policy? Will you start decreasing the corporate tax rate only after you have secured necessary revenue sources to fund the rate reductions over several fiscal years? Or will the tax system be designed to ensure that the tax reductions are ultimately substantive?

CHIEF CABINET SECRETARY SUGA: In any case, the Research Commission on the Tax System will continue until the end of this year. In the meantime, I expect that the framework will start to take shape as the Commission conducts reviews while keeping an eye on the financial situation.