* Japanese Tax Commission Proposes Investment Tax Breaks
In a bid to release a large pool of money locked away in the nation’s savings accounts, the Japanese Tax Commission is pushing through a series of tax breaks designed to encourage more investment in Japan's capital markets. One of the core measures being proposed by the Commission, which advises the government on tax policy, will allow individuals to reduce their tax liabilities by offsetting losses from stocks and investments against other income such as interest earnings from bank deposits.
The Commission is also proposing the standardisation of taxation on investment income from various sources at a rate of 20%, under a unified system that will integrate profits and losses on instruments such as government and corporate bonds, stock dividends and savings income.
The Tax Commission is preparing to present its report on Tuesday, and it has been suggested that the government will begin working on the proposals from the autumn, with reforms implemented in stages from 2005.
