Japanese Cabinet approves bill to set up "strategic special zones"

The Japanese Cabinet approved a bill to set up "strategic special zones" on Tuesday as a centerpiece of economic growth strategy to promote deregulation exclusively, local media reported.

Prime Minister Shinzo Abe's government is seeking the passage of the bill during the ongoing extraordinary Diet session through Dec. 6, according to Kyodo News.

The government is expected to designate three to five special zones early next year, which would be aimed at attracting people and investment from both domestic and abroad through deregulation and tax incentives.

It also seeks regulations which would be relaxed in the zone to promote urban redevelopment, as well as those for launching an agricultural production corporation.

Other deregulation steps to be implemented are allowing private- sector firms to operate public schools, enabling hospitals to increase beds more easily, and expanding the scope of treatment by non-Japanese doctors and nurses.

Details of tax breaks in the special zones will be decided at the end of the year in discussions about tax reforms for the next fiscal year starting April 2014, officials close to Abe said.