An across-the-board local corporate tax may be introduced in all prefectures as early as fiscal 2002, the head of an advisory panel to the prime minister indicated Tuesday.
Corporate earnings as of March 31, 2002, should provide a clue as to whether the economic recovery is solid enough to allow new taxation of all businesses, said Hiroshi Kato, chairman of the Tax Commission.
This is the first time Kato has mentioned a specific date for the potential introduction of a "gaikei-hyojun" tax, which can be levied even on loss-making companies.