Japan Press Weekly

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2012 February 22 - 28 [POLITICS]

\270 million in donations from securities firms to LDP and DPJ for extending tax breaks

The securities industry has made 270 million yen in donations to the Liberal Democratic Party and the Democratic Party of Japan over the past 5 years for the continued extension of the preferential securities tax measure.

The revelation came on February 28 in an Akahata investigation.

The tax rate for stock deal profits was reduced to 10% from the original 20%.

The LDP-Komei government introduced the preferential securities tax breaks in 2003. Since then, the measure has repeatedly been extended.

Japanese Communist Party Chair Shii Kazuo on February 10 at a Lower House Budget Committee meeting demanded that Prime Minister Noda Yoshihiko immediately reinstate the tax rate to 20% and stop continuing the tax relief on stock deal profits amounting to 1 trillion yen in 2 years.