• POLITICS & GOVERNMENT

Japan eyeing tax breaks to expand food exports

TOKYO (Jiji Press) — The government and ruling bloc are considering tax breaks to increase exports of agricultural products and food, sources familiar with their discussions told Jiji Press on Monday.

Special depreciation of 30% or 35% will apply to farm producers and food processors making investments to meet requirements in export markets, the sources said.

The tax breaks are aimed at encouraging businesses to make capital investment to meet safety standards and consumer taste in export markets.

The tax breaks are expected to be in place for several years. They are likely to be included in a fiscal 2022 tax reform package due out later this week.

Eligible for the tax breaks will be certified exporters. A 30% depreciation will be allowed for machinery investment and 35% for factory investment, the sources said.

The government aims to boost Japan’s annual exports of farm products and food to ¥5 trillion by 2030. In the first 10 months of 2021, exports totaled ¥973.4 billion, on track to top ¥1 trillion for the first time ever this year.