Tokyo, Sept. 3 (Jiji Press)–The Japan Business Federation, or Keidanren, plans to urge the government to expand its research and development tax breaks to aid companies struggling with the coronavirus pandemic, informed sources said Thursday.

Keidanren, the country’s biggest business lobby, will make the request in its upcoming tax system reform proposals for fiscal 2021 that will be presented to the government shortly, the sources said.

Companies are currently allowed to deduct up to 25 pct of research and development expenses from their corporate taxes. Keidanren will call on the government to raise the proportion to 30 pct.

The organization will also ask the government to promote digital transformation by making a certain amount of investments in equipment necessary to support remote working tax-deductible

The federation will also call for tax breaks related to cybersecurity investment.