Takeshi Noda, chairman of the LDP’s Research Commission on the Tax System (the ‘tax panel’), in an interview with The Nikkei on Thursday:

  • Says he would support lowering the effective corporate tax rate from next fiscal year
  • As long as other income sources can be secured to make up for the resulting revenue shortfall

A reduction next fiscal year “must be accompanied by a broadening of the tax base”

  • Noda hinted at lowering the rate in stages over several years
  • Cautioned against looking at South Korea’s 24% as a target
  • Said a cut of 10 percentage points is excessive

More at the Nikkei

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The spade work continues to be done preparing for a corporate tax rate cut in Japan. I wonder how much of the expectation is now priced in to the stock market?