JCP Shii criticizes other parties for seeking consumption tax increase

As the issue of a consumption tax increase came to the fore in the House of Councilors election campaign, Japanese Communist Party Chair Shii Kazuo held a news conference in Osaka on July 5 to explain that the JCP is the only party to oppose the tax increase plan.

The Democratic Party of Japan has taken the lead in calling for a three-percent increase in the consumption tax rate ostensibly to maintain the pension system, followed by Prime Minister Koizumi Jun'ichiro calling for "the earliest possible talks" to be held between the ruling and opposition parties to discuss the details.

The DPJ proposes that the consumption tax rate be increased from FY 2007, while the LDP-Komei-government in its FY2004 basic economic policy made clear that it will reach a conclusion on this issue before FY 2007.

Shii said, "The ruling parties and the opposition DPJ are thus trying to pave the way for a consumption tax rate increase through talks behind the scenes. This is an imminent issue that will be materialized soon after the Upper House election."

"Therefore, voting for the LDP, Komei, or the DPJ will mean giving them carte blanche on this serious matter," Shii added.

Refuting the arguments that a consumption tax increase is necessary to maintain social services, Shii made the following three points:

- First, the consumption tax, which is levied even on daily necessities, is the worst ever system destroying the welfare system.

- Second, it is intended primarily to reduce major corporations' tax burdens.

- Third, social services can be maintained and improved without depending on the consumption tax as a source of revenue through correcting the way tax money is collected and used. (end)