Ministers praise business leaders' call for a consumption tax rate increase

The Koizumi cabinet's economic ministers and ruling party officials have hinted at the possibility of increasing the consumption tax rate from the present five percent.

Their remarks came as a response to the previous day's call of the three major business groups for a raise in the consumption tax rate.

Minister of Finance Shiokawa Masajuro said that a heavier burden on the people through indirect taxes, including the consumption tax, is inevitable. Takenaka Heizo, Minister of State for Economic and Fiscal Policy and Minister of State for Financial Services, suggested that discussion on raising the consumption tax rate is necessary. Hiranuma Takeo, Minister of Economy, Trade and Industry, described the tax-increase proposal as significant.

Earlier, the Japan Business Federation published a paper luring politicians with political donations, the main aim being to win their support to gain their appreciation of the business circles' wishes.

The series of remarks in favor of the tax rate increase show how nasty it is of the Koizumi government to distort national politics by money power aligned with the business circles, said Akahata.

Tax increase remarks come under fire

"The consumption tax rate increase will further discourage consumers from spending money." (National Confederation of Trade Unions-Zenroren)

"A cut in consumption tax rate is the only way to break away from the present deflationary recession." (Liaison Council of Various Circles to End Consumption Tax)

"We will elect politicians who promise to abolish the consumption tax." (National Association to End Consumption Tax)

"The current sluggish personal spending began when the consumption tax rate was raised to five percent from three percent. The earnest demand of smaller business owners is reduction in the tax rate and its eventual abolition." (National Federation of Merchant and Industrialist's Organizations)

The consumption tax was introduced on the pretext of the need to prepare for an aging society, but elderly people's share of medical expenditure keeps rising. We'll never allow a tax-rate increase to be carried out again in the name of securing funding for social services. (Central Council for Promotion of Social Security) (end)