Japan Press Weekly

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2011 October 12 - 18 [POLITICS]

Finance minister vows to submit tax-hike bill to 2012 Diet

Finance Minister Azumi Jun on October 12 swore to business leaders that he will increase the consumption tax to 10 percent within the next few years, stating, “I will definitely put forth a consumption tax bill next year.

Speaking about a comprehensive reform of the social welfare and tax system at a social gathering hosted by the Japan Business Federation (Nippon Keidanren), Azumi said that he has no other option but to ask the public to accept an increase in the consumption tax rate.

In response to Nippon Keidanren’s demand, he will seek to increase funds for the social security program by raising the consumption tax.

He made the statement in response to the policy speech delivered on September 13 by Prime Minister Noda Yoshihiko and in step with the Growth Strategy 2011 report released on September 16 by Nippon Keidanren.

Nippon Keidanren states, “Comprehensive reform of social security, tax, and public finance is essential to achieving sustainable economic growth,” and thus proposes that the government “incrementally raise the consumption tax rate at national and regional levels to 10% by 2015.” Prime Minister Noda is intent on submitting a tax hike bill to the 2012 ordinary Diet session.

Under the imminent danger of a global financial crisis, a heavier regressive tax burden will further suppress domestic consumption, Akahata reported.