Japanese government must urgently cut the countrys
corporate tax rate and to implement tax breaks for research and
development, as well as other investments if the steel industry
is to recover.
"Our industry has been
hit by the triple whammy of the high yen, high corporate tax
rates and slow economic growth," the Japan Iron and Steel
Federation (JISF) said.
Japan has the
second-highest corporate tax rate in the developed world after
the United States.
Years of economic
stagnation have led to a sharp drop in research and
development, JISF added, noting that tax breaks were urgently
needed to encourage companies to invest in new research if
Japan is to retain its technological edge over its rivals.
It has also called on the government to spur reconstruction
of the countrys tsunami-wrecked northeast, as well as
implement reforms to employment and business codes aimed at
making the nations legal system more business friendly
and incentivise economic development.
A version of this
article was first published in AMM sister publication Steel