Japanese Finance Minister Taro Aso reiterated on Tuesday his cautious view on a possible corporate tax cut to cushion the blow from a planned sales tax hike as the government prepares to draw up an economic package by the end of this month.
Aso made no mention of the size of the package, while repeating that the government should not resort to extra borrowing if it were to compile an extra budget for the current fiscal year to next March, given the need for fiscal reform.
"Realistically speaking, it would be difficult to lower the corporate tax while raising the sales tax," Aso told reporters after a cabinet meeting".
Source: Reuters
