2010 April 14 - 20 [
FINANCE]
Business circles lobby for regressive tax hike
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April 14, 2010
The Japan Business Federation (JBF or Nippon Keidanren) has demanded that the government increase the consumption tax rate to 20 percent by the mid-2020s and cut the effective rate in corporate taxes to 30 percent from the present 40.
A growth strategy published on April 13 by Nippon Keidanren stresses the need to immediately implement a gradual increase in the consumption tax, reduce dependency on corporate taxes, and recover the function of the income tax by reviewing tax deductions for income, spouse, and public pension.
The business world is pressing the government to reflect this proposal in the government midterm fiscal framework to be drawn up in June.
National Strategy Minister Sengoku Yoshito soon responded in favor of the proposal, showing his understanding of the importance of a shift in government policy towards a consumption tax hike.
The Hatoyama Cabinet has promised to freeze the current consumption tax rate for four years. However, Sengoku said, “If the government neglects to do something to boost tax revenues, it will face major difficulties in state finances.”
- Akahata, April 14, 2010
