The Japanese Bankers Association (JBA) has asked the Ministry of Finance in Tokyo to consider extending the period in which repo transactions between Japanese and foreign banks are exempted from tax.
The measure is one of three the JBA is planning to put to the government formally in September this year. The others are tax exemption for non-JGB bonds, and an extension of the duration of the exemption from withholding tax on income sent offshore.
“The outline requests will be further discussed until being finalized as official requests in September 2005,” says a spokesman for the Custody Division of Mizuho Corporate Bank which, as chairman bank of the JBA, is leading the discussions with the Japanese government.