Japan cuts corporate taxes to spur economic growth

Tokyo

JAPAN'S ruling coalition has approved a tax reform plan that will cut corporate taxes from April and pledges further reductions in coming years in a bid by Prime Minister Shinzo Abe to boost profitability and bolster economic growth.

The plan approved by Mr Abe's Liberal Democratic Party and its coalition partner Komeito on Tuesday would cut the overall effective corporate tax rate by 2.51 percentage points to 32.1 per cent from April and then to 31.3 per cent the following year.