The Japanese government has agreed the first in a series of promised corporate tax cuts, as it tries to encourage cash-rich companies to raise wages to spur demand.
Lifting household incomes has been a key goal Shinzo Abe, prime minister, who has faced criticism that the fall in the yen engineered by his “Abenomics” policy package has pushed up the cost of living.
In the days after Mr Abe preserved his party's comfortable majority in a snap December election, the government drew a commitment from Keidanren, the biggest employers’ group, that members would exert “maximum efforts” to raise pay in 2015.
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