Japan Press Weekly

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2022 November 2 - 8 [POLITICS]

Smaller business owners call for gov’t support to alleviate negative impacts of COVID-19 amid price surge

The National Liaison Council of Small- and Medium-sized Entrepreneurs Circles (Zenchuren) on November 7 petitioned the government to provide more financial support to SMEs struggling with the negative impacts of the COVID-19 pandemic and the ongoing price surge.

Earlier on the day, Zenchuren handed to Japanese Communist Party Lower House member Miyamoto Toru more than 61,000 signatures calling for the lowering of the consumption tax rate to 5% and the abolition of the consumption tax invoice system, asking him to have the over 61,000 voices heard in the Diet. In response, Miyamoto pointed out that the invoice system will open the way for the imposition of even heavier tax burdens on SMEs in the future, and expressed his determination to work together with smaller business operators to oppose the implementation of this unjust system.

In the petitioning to the Economy and Trade Ministry, Zenchuren demanded that the government protect SMEs from rising prices and the business downturn due to the pandemic by such means as placing a moratorium on or an exemption of small businesses’ loan payments, and providing direct support for SEMs’ efforts to offer higher wages. They also made a request regarding the government policy on SMEs which included a measure to safeguard a franchisee from unfair treatment by a franchisor.

Shoji Masato, chair of the Franchisees Association of Japan, said, “I want the national government to deal with problems associated with franchise agreements between franchised stores and headquarters.”

Along with the Economy and Trade Ministry, small business owners made representations to the Cabinet Office, the Labor and Welfare Ministry, the Finance Ministry, the Land and Infrastructure Ministry, and the Financial Services Agency.