April 29, 2011
If the 33,355 companies nationwide capitalized at 0.1 billion yen or more use just 4.7% of their internal reserves to buy government bonds, they could help secure 15 trillion yen of funds for reconstruction and relief in the March 11 disaster-hit areas, the Japan Research Institute of Labor Movement (Rodo-soken) on April 28 reported.
The report underlines the lack of justification in the present call for an increase in the consumption tax to fund reconstruction projects.
Rodo-soken has argued that the call will have a negative impact on the national economy and will actually weaken efforts at reconstruction.
Rodo-soken estimates that for Toyota, the money amount allocated for government construction bonds would be 630.1 billion yen (out of its 13.4 trillion yen in internal reserves), Honda - 343.3 billion yen and Panasonic - 195.7 billion yen.
Fujita Hiroshi, Rodo-soken vice-Secretary General, said, “These corporations have been benefited from the preferential taxation system for years. They should be asked play a responsible social role in supporting projects to restore livelihoods and businesses in areas affected by the disaster which is regarded as a national crisis.”
Rodo-soken claimed that this minimal use of corporate internal reserves for the post-disaster reconstruction would help to increase Japan’s economic growth by 2.6%, and that corporations can also experience a beneficial economic ripple effect.
The report underlines the lack of justification in the present call for an increase in the consumption tax to fund reconstruction projects.
Rodo-soken has argued that the call will have a negative impact on the national economy and will actually weaken efforts at reconstruction.
Rodo-soken estimates that for Toyota, the money amount allocated for government construction bonds would be 630.1 billion yen (out of its 13.4 trillion yen in internal reserves), Honda - 343.3 billion yen and Panasonic - 195.7 billion yen.
Fujita Hiroshi, Rodo-soken vice-Secretary General, said, “These corporations have been benefited from the preferential taxation system for years. They should be asked play a responsible social role in supporting projects to restore livelihoods and businesses in areas affected by the disaster which is regarded as a national crisis.”
Rodo-soken claimed that this minimal use of corporate internal reserves for the post-disaster reconstruction would help to increase Japan’s economic growth by 2.6%, and that corporations can also experience a beneficial economic ripple effect.
