Nippon Keidanren, Japan's most influential business lobby also known as the Japan Business Federation, called for raising the 5-percent consumption tax rate to 10 percent or higher in a tax reform proposal announced Monday.
In also calling for lowering the nation's effective corporate tax rate by 5 percentage points or more from the present level of around 40 percent, it noted the need for a quick implementation of tax reforms to realize fiscal rehabilitation and rebuild the nation's social security.
The lobby reiterated its opposition to introducing an environmental tax.
Keidanren said the controversial sales tax rate should be raised in stages to more than 15 percent by the mid-2020s.
But it also advocated the creation of a rule to return additional tax payments on daily necessities, including food, to low- and middle-income earners.
The lobby indicated its opposition to scaling down tax reductions for corporate research and development activities at the same time as lowering the corporate tax rate, because it would not alleviate the overall tax burden on companies.
- sales tax