Companies that raise pay by 3% could receive tax relief
- Japanese corporations that raise workers’ pay by at least 3% could get extra tax relief
- Will discuss the proposal Nov 22nd
- Plan hoping to be included in FY 2018 tax revision due med-Dec
Nikkei has the story here.
This could get the ball rolling for next Spring wage discussions, and should be positive again for Japanese stock markets if anything. A real measure but where does the money come from? No fiscal balance in sight for years in Japan
In my opinion this is a dual negative for JPY: positive risk per equity market correlation and watering down State finances .
On a side note, tonight’s Gotobi day, maybe we see some corporate JPY selling on the Tokyo fixing at 00.55GMT .