4 trillion Yen equivalent to 30.5 billion $ .4% of Japanese GDP tax cut Package fails to impress International investors.
According to FT today the package I have talked in my prvious post has failed to im[press International investors.The Japanese prime minister on Thursday announced a package of measures, including 4 trillion ($30.5bn) income tax cuts, to boost the country's sagging economy.But even as Ryutaro Hashimoto was admitting that he did not know what effect the measures will have, the international financial community was registering its disappointment. Last week President Bill Clinton had said that Japan should take bold action. The feeling on Thursday was that the 2 trillion cut for this calendar year, and the same next year, is far from bold. Analysts said the cuts announced on Thursday would account for 0.4 per cent of Japan's gross domestic product.
He announced that he wanted Japan's corporate taxes brought into line with international levels within three years. He said that the package this time around would include a total of 10 trillion ($76.25bn) in fresh spending, details of which will be announced on April 24. He added that he will reconvene a meeting of the Fiscal Reform Panel on Friday.The Nikkei 225 stock index finished at 16,536.66, up 160.04 points, on Thursday before Mr Hashimoto's announcement. Its low, at the turn of the year, was 14,488.00 |
