Under this agreement, corporate tax would be slashed from 46% to 40% and consumption tax would be radically revised. In addition to these changes the package includes cuts in income tax and housing investment taxes
Dean Yoost, tax partner at PricewaterhouseCoopers in Tokyo does not believe that the cuts will have the desired effect. ?Realistically we need major changes, not tweaking of the tax rates. Temporary tax cuts do not increase consumption because people just save their money.?
There is still little indication of the extent or the timing of the promised cuts in housing investment taxes and income tax.
