Japan protests over Russia’s tax-exemption measures in controversial islands

TOKYO: The Japanese government has lodged a strong protest with Moscow over approving a new law that offers tax exemption to companies that invest in four Russian-controlled islands claimed by Tokyo.

Expressing regret over the move, Chief Cabinet Secretary Hirokazu Matsuno  said that Tokyo conveyed its concerns to Moscow. “The move runs counter to Japan’s position,” he added.

It is pertinent to mention here that Japan calls the four Russian-controlled islands the Northern Territories.

He maintained that the introduction of preferential tax systems based on Russian law for economic development in the region and inviting Japanese and other companies is against Japan’s stance.

The chief cabinet secretary was of the view that the move could harm the objectives of the joint Japanese-Russian economic activities.

“Moscow introduced the preferential tax measures despite Japan repeatedly conveying its position on the four Russian-controlled islands,” he added.

According to Japan’s government, the four islands were occupied illegally after World War II.