The government's growth strategy draft incorporates most of Keidanren's proposals. I hope it will be executed in accordance with the roadmap. The private sector is and will be the driving force behind economic growth. Keeping that in mind, companies will work harder to revitalize the economy. The economic conditions are constantly changing. Prime Minister Abe said the growth strategy that will be approved this time is a mere waypoint. This is not the end, but the beginning. I hope that additional measures will be introduced when deemed necessary.
Investment Tax Credit
Prime Minister Abe has instructed to hold discussions on tax system revision for the next fiscal year earlier than initially scheduled. Policy measures aimed at inspiring further economic growth including investment tax credit are going to be studied. Those are encouraging words and the direction is quite right.
Various statistics suggest that capital investment in this fiscal year will increase. It is a good sign of recovery. What is desperately needed now is steady implementation of the growth strategy based upon the official schedule. When it works and demand picks up, the investment tax credit will serve as a powerful incentive. The effective policy measure needs time to mature and company to go with.
Japanese businesses need to get free from a handicap to survive global competition. Specifically, it is necessary for the government to improve the domestic business environment so that Japanese companies can compete on an equal footing. I hope that the reduction of effective corporate tax rates, not speak of investment tax credit will be considered earlier than usual.