TOKYO The 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 First.