TOKYO: The Japanese government is likely to cut the effective corporate tax rate to below 30 per cent in fiscal 2016 from April, a year earlier than planned, people in the government and coalition parties told Reuters Saturday.

Relevant ministries and agencies are now in talks to slash the rate to a level between 29.5pc and 30pc in April, aiming to spur capital spending and boost wages, the people said.

The government initially planned to slash the rate to below 30pc in fiscal 2017 after reducing it to 31.33pc from the current 32.11pc in fiscal 2016.

Published in Dawn, November 29th, 2015