Prime Minister Koizumi has no hesitation in receiving corporate donations

While declaring that he will not raise the consumption tax rate during his tenure, Prime Minister Koizumi Jun'ichiro said he will be happy to accept donations from a business organization that calls for the rate to be increased to more than 10 percent.

The Japan Business Federation (Japan Keidanren) is urging its member firms to donate money to political parties that call for a consumption tax rate increase.

In September, Keidanren published a 10-point policy priority list, including corporate tax cuts and a consumption tax rate increase, as a guideline used to determine that political parties are entitled to receive corporate donations.

At a House of Representatives Budget Committee meeting on October 1, Japanese Communist Party Chair Shii Kazuo questioned Koizumi, "If you promise not to raise the consumption tax rate for the next 3 years, shouldn't you refuse to accept donations from Keidanren, at least during that period?"

The prime minister answered, "I won't raise the rate. But if Keidanren offers me donations, I will be happy to receive them."

Shii said, "Your job is to pave the way for increasing the consumption tax rate. That's the true characteristic of the Koizumi Cabinet."(end)