A Tax Commission subcommittee agreed Friday that some of the government's corporate tax breaks should be abolished as planned next March because the economy seems to be recovering.
The breaks targeted by the panel include a measure to spur information technology investments that is worth about 500 billion yen in tax cuts a year, and a step to promote research and development that is worth some 100 billion yen a year, Tax Commission Chairman Hiromitsu Ishi said after a meeting.
The cuts were introduced in fiscal 2003 as part of a deflation-fighting initiative and were meant to last for three years.