The government approved tax reform plans Thursday for fiscal 2011 that include a cut of 5 percentage points in the corporate tax and a hike worth about ¥500 billion for individuals, especially high income earners.
The tax reform plans, proposed by the Tax Commission and adopted by Cabinet, include an environment tax on carbon emissions to fight global warming, as well as a cut in the aviation fuel tax.
The package is aimed at creating a more business-friendly environment through cutting the 40.69 percent corporate income tax, relatively high compared with international standards of around 25 to 30 percent. The government hopes the 5-point cut will strengthen companies' competitiveness overseas, attract foreign companies and create more jobs.