Abe unveils plan for tax cuts to boost capex

Japanese Prime Minister Shinzo Abe said on Sunday the government would decide on tax cuts in autumn to encourage companies to boost capital expenditure as part of sweeping reforms to revive the economy from nearly two decades of stagnation. The government will also work on legislation to scrap regulations hampering corporate research and investment and secure passage in parliament in autumn, he said.
"We'd like to decide on bold tax cuts for capital expenditure in autumn," Abe told public broadcaster NHK. The measures will add to a series of steps the government unveiled in a draft of its growth strategy last week, such as setting up special economic zones to attract foreign business and raising incomes by 3 percent annually. The growth strategy is the "Third Arrow" in Abe's prescription to reverse deflation, which also includes hyper-easy montary policy and big government spending.