Tokyo, Aug. 17 (Jiji Press)–The Japanese government is considering extending tax breaks designed to promote 5G large-capacity, ultrahigh-speed wireless technology, informed sources told Jiji Press.
The move is aimed at making the technology available across the country to promote digital transformation.
The tax breaks were introduced in fiscal 2020 and are currently set to expire at the end of fiscal 2021. The government plans to extend them by one to two years, the sources said.
The industry ministry plans to include the extension in its list of tax reform proposals for fiscal 2022, which begins in April next year, the sources said.
The 5G technology enables the remote control of devices without delay and is considered essential to automatic driving.
Wireless operators and others developing 5G networks are allowed to deduct 15 pct of related investments from corporate tax or book 30 pct of them as expenses.
But the rate of deduction is large by tax standards, and some government officials may seek to reduce the figure. The industry ministry and some ruling coalition officials want to maintain the rate to promote the technology.