Tokyo, Dec. 8 (Jiji Press)–The Japanese government and ruling bloc are planning tax breaks to support efforts to reduce environmental burdens at production sites for agricultural, forestry and fisheries products in order to secure stable food supplies, Jiji Press learned Wednesday.
According to a draft of their special tax measures, special depreciation of up to 32 pct will apply to producers and other business operators that introduce equipment capable of alleviating environmental burdens, mainly to cut their corporate tax payments.
The plan will be included in the ruling camp’s tax system reform proposals for fiscal 2022, which starts in April.
To be eligible for the special depreciation, businesses will be required to acquire related equipment under a new project certification system, according to the draft.
The plan calls for bringing forward the depreciation of some eco-friendly equipment, increasing the amount that can be counted as expenses in the first year of introduction and cutting the companies’ tax burdens.
The government and ruling camp hope to promote capital spending through the plan and realize both environmental friendliness and productivity improvement, informed sources said.
The maximum level of special depreciation will stand at 32 pct for machinery designed to reduce environmental burdens and 16 pct for such buildings.
The government and ruling bloc assume that the envisaged tax relief program will cover purchases of machines that lead to the reduced use of chemical pesticides and fertilizers and the development of facilities that provide quality compost.