December 13, 2010

1. Prime Minister Naoto Kan today decided to cut the statutory corporate tax rate by 5 percentage points and instructed the government’s Tax Commission to make final arrangements for this. I sincerely welcome this decision because as the Minister of Economy, Trade and Industry I am responsible for the fulfillment of the New Growth Strategy and have been advocating cutting the statutory corporate tax rate as a key measure to achieve this goal.

2. This 5 percent cut is the first step in lowering Japan’s statutory corporate tax rate, which is too high by international standards, to a level comparable to those of major countries in order for Japan to  provide global-standard investment and business environment. This is a concept that aims to invigorate the economy by preventing the offshore movement of business operations and increasing inward investments. Based on this concept, I have reiterated the need to substantially reduce corporate tax burdens. I would like to thank the Prime Minister for his directive to cut the statutory corporate tax rate by 5 percentage points in accordance with this concept.

3. As the Minister of Economy, Trade and Industry, I will capitalize on this opportunity to create the world’s best investment and business environment in Japan in a manner that fosters growth and investment, with a view to coping with the strong yen and deflation as well as to supporting private sector efforts to enhance investments.

4. I expect private enterprises—the primary source of investment—to shift from the current defensive management style to a more aggressive stance, actively make future-oriented investments, and enhance their competitiveness, while striving to increase domestic employment.

5. I would also like to express my gratitude to Minister of Finance Yoshihiko Noda, Minister of State for National Policy Koichiro Gemba, Minister of State for Economic and Fiscal Policy Banri Kaieda, and Minister for Internal Affairs and Communications Yoshihiro Katayama for the arrangements they have made to slash the statutory corporate tax rate. I expect that they will move on to final arrangements at the Tax Commission.

Corporate Affairs Division, Economic and Industrial Policy Bureau