The Liberal Democratic Party's panel on taxation agreed Thursday to urge the government to reduce registration taxes levied on companies when they spin off divisions to the level paid by merging firms.
The scheme is designed to lighten corporate tax burdens and thereby help Japanese firms restructure and improve their competitiveness.
A subcommittee under the LDP's Tax System Research Council, during its meeting on Tuesday, agreed to include the scheme in a set of recommendations that the council is expected to compile next Tuesday, members of the subcommittee told reporters.