Effective Corporate Tax Rate
We are looking forward to seeing a reduction in Japan's effective corporate tax rate. The tax rates in Asian countries as well as some European nations are in the range of 20%. It is necessary for Japan to improve its business environment so that Japanese businesses can compete with foreign companies without handicap in the domestic field just as they currently do in the global market. The tax cut will help us make a giant leap towards the goal.
A lower effective corporate tax rate will encourage companies make bigger profit and expand capital investment leading to job increase. The domestic employment conditions have steadily improved. It is supported by some figures: The ratio of job offers to seekers stood at 0.94 and the unemployment rate fell to 3.8% in July. If the Japanese economy keeps growing just like this, it will l bring more jobs and higher pay without doubt.
It is only natural to maintain good relationship with one of our neighbors, China. Recently the bilateral relations have turned chilly and public sentiment has worsened in both countries nevertheless.
It is not good to just sit back and watch the current situation continues. It is necessary for our two countries to get more contact with each other not only in business but also in the political field. The business community has been promoting grassroots exchanges, interregional exchange programs and communication among young people amid difficult atmosphere. It is essential to foster mutual understanding and trust between Japan and China through these activities. I am planning to visit China in November believing the bright future.