Changes to rates of consumption tax and corporate income tax expected in 2014

It has been reported that the Prime Minster will officially announce the plan to increase the consumption tax from 5% to 8% and to reduce the corporate income tax rate by abolishing the 10% surcharge on the total amount of corporate tax due (Special Reconstruction Corporation Tax – introduced in 2011 to cover the financial losses caused by the Earthquake and Tsunami in 2011).

Further, according to the plan, the corporate income tax will be reduced for companies which increase emplo…