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Gov't proposes special tax measure for Okinawa

Date Posted: 2001-12-20

The government of Japan on Friday submitted a 2002 tax reform measure that would allow special tax treatment for Okinawa. Under the terms of the proposal, a Financial Special District implementing a reduced corporate tax for businesses within the area would be established in Okinawa. In addition, a duty-free shop would be permitted to conduct operations outside the airport - a first on the island. The proposal also allows for an extension of reduced taxation on flights to and from Okinawa. The Cabinet will draw up a bill encompassing the terms of the proposal and will submit it to the regular Diet session scheduled for next February.

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