FOCUS: Analysts skeptical about effect of Japan tax breaks on pay hikes

Japan's ruling coalition endorsed a tax reform plan Friday for fiscal 2022 that will see an expansion in efforts to encourage companies to raise wages in line with Prime Minister Fumio Kishida's cherished policy of pursuing wealth redistribution to households and economic growth.But many analysts predict the effect of tax breaks for companies aimed at pushing up basic salaries of their employees will likely be limited.They believe the planned tax deductions will be non-permanent and insufficient to change the course of wages in Japan being almost flat over the last 30 years, saying that mor…READ FULL ARTICLE