Osaka gov’t to double corporate residential tax

Osaka gov’t to double corporate residential tax

OSAKA, Sept. 11 Kyodo

The Osaka prefectural government on Monday announced a plan to double residential taxes on companies in accordance with their capital.

The prefectural government plans to carry out the tax increase for three years from fiscal 2001, which begins next April, to ease its fiscal situation.

The plan will not dampen economic activity as it is designed to boost tax revenues through a moderate increase in levies by a large number of companies, Osaka Governor Fusae Ota said.

Companies operating in Osaka pay two kinds of residential tax — one imposed in accordance with their capital and another that reflects state corporate income taxes.

The former tax breaks down into five amounts ranging from 20,000 yen to 800,000 yen.

The Osaka government plans to exclude from the tax plan some 170,000 companies which are capitalized at 10 million yen or less and thus pay the minimum tax of 20,000 yen.

The tax plan, which would affect some 60,000 companies, is estimated to increase the prefectural government’s tax revenues by 6.1 billion yen.

Revenues from the two kinds of corporate residential tax have dropped by half from the peak of 835.2 billion yen in fiscal 1989.

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