Abe fires third reform arrow

JAPANESE Prime Minister Shinzo Abe yesterday released further details of his supply-side reform plans, including corporation tax cuts.

The “third arrow” of Japan’s radical package of economic reforms looks to long-term growth challenges. The country is now set to cut corporation tax to below 30 per cent in the next few years, from above 35 per cent.

Abe also proposed making rules on overtime more flexible, but Chris Scicluna of Daiwa Capital Markets noted that substantive labour market, investment and tax reforms were still not on the table.