The ruling coalition released its tax reform proposals for fiscal 2006 on Dec. 15. Despite the tight fiscal conditions, it is laudable the ruling parties recommended measures aimed at boosting economic activity -- such as those that encourage corporate investment in research and development, expenditures for information technology and spending on housing.
Meanwhile, expectations are rising that the government and the ruling coalition will start a fundamental review next year of the structure of state expenditures and revenue, including the tax system.
The Council on Economic and Fiscal Policy is expected to specify options and timetables for the review by June 2006. The Liberal Democratic Party's tax commission will likely resume debate on the issue early next year, while the government's tax panel is scheduled to compile its triennial, medium-term report on tax reforms next year.
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