TOKYO: Japan’s ruling Liberal Democrat Party has approved a tax reform package that will cut corporate rates for companies who increase employee wages and productivity.
Companies that increase employee wages by three percent would be able to reduce their corporate tax rate down to 25 percent. A further cut to 20 percent would be possible for companies investing into improving their productivity or engaging in digitalization. This tax relief would be introduced for three years only, beginning next fiscal year, which begins in April.
The government also approved plans to increase duties on tobacco products from October 2018, as well as implement a new departure tax of JPY1,000 (USD8.84) per person from January 2019.
Income taxes will rise from January 2020 for workers earning more than JPY8.5m (USD75,118) per year, and tax deductions for company employees will be reduced.
“Production will be between 23.5 million to 25.5 million mt with about 18 million mt of exports. The difference between production and exports will be given over for domestic feed,” a source said.
Ukrainian corn has even missed out in Egypt where freight has made it more competitive than Argentine and Brazilian. “Buyers still prefer Argentine origin despite Ukrainian being a little cheaper” a source said.
Corn in Western Ukraine looks better than year while the Center looks the same but the South and East look a little worse, another source said.
Many participants say they expect around 10 million mt of Ukrainian corn to go to the EU compared with the 16 million mt expected by the USDA next season. They also expect China to take just 2 million mt of Ukrainian corn compared with the USDA forecast of 3 million mt. Chinese imports of corn are expected to rise subsequent seasons as China gives more domestic acreage over to soy at corn’s expense.
Nonetheless, the competitiveness of US corn remains a concern, especially as it is now pricing to non-traditional destinations. Sources said several 60,000 mt parcels traded to Spain recently.
Offers for US corn for FOB January loading Panamax vessels have been heard around $156/mt while Ukrainian Handysize FOB offers are around $166/mt.
Consequently, Ukrainian producers expect their advantage to remain for spot pricing to nearby destinations.
