A Japanese government panel will investigate whether to grant tax breaks to corporations that invest in sectors deemed strategically essential in the coming months, a policy similar in aim to the US Inflation Reduction Act. The proposed approach would make it more appealing for corporations to undertake large-scale investments in Japan by providing tax breaks for long-term projects with substantial launch and operating expenses.
The council has been entrusted with devising a "new form of capitalism," as Prime Minister Fumio Kishida has characterized it.
According to a government official, tax advantages might be extended to investments in fields like as batteries, electric cars, and semiconductor chips, and the program could be in effect for around ten years. According to the person, Japan's ruling coalition would have the last word on whether any provisions were included in the annual tax reform bill for this year.
Headed by Kishida, the panel consists of cabinet ministers and 16 people from the private sector including academics and representatives from business lobbies, labour organisations and private companies, as per reuter.
It has proposed a variety of policies over the years, including initiatives to enhance the startup market and extend a stock investment program for people.