Business circles urge government to raise consumption tax rate

The government is planning to begin discussing a consumption tax increase soon after the July 11 House of Councilors election in the name of reforms of social services, including the pension system, medical services, and the nursing care system.

The discussion will be on the people's burden of social insurance premiums, tax burden for social services, as well as the need to secure pension funds.

On July 6, the government announced a member list of an advisory panel that will review the social services in response to a strong request from business circles.

Members of the panel include: Japan Business Federation Vice-chairman Nishimuro Taizo, who is also Toshiba Corporation chair; Japanese Trade Union Confederation (Rengo) President Sasamori Kiyoshi; Government Tax Commission Chairman Ishi Hiromitsu; Chief Cabinet Secretary Hosoda Hiroyuki; Health, Labor and Welfare Minister Sakaguchi Chikara.

Ishi is known as a leading advocate of an increase in the consumption tax rate. Nishimuro recently argued in an economic magazine that consumption tax revenue be used mainly for social services.

There is no doubt that the ruling Liberal Democratic and Komei parties, and the opposition Democratic Party, in addition to the panel, will launch public relations campaigns calling for an increase in the consumption tax rate, said Akahata on July 7. (end)