Japan Press Weekly

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2013 August 28 - September 3 [POLITICS]

137 tax accountants disagree with consumption tax hike

Dozens of licensed tax accountants across the nation on August 29 published an appeal opposing the planned increase in the consumption tax rate, arguing that a higher tax will further stagnate the Japanese economy.

Initiated by 36 tax practitioners, the appeal received an endorsement from 137 tax professionals as of that day.

The appeal warns that the upcoming rise in the consumption tax, scheduled for April 2014, unfairly will place heavier burdens on lower income earners and harm small- and medium-sized businesses and the livelihoods of the general public.

As a way to increase tax revenues, the appeal proposes that the government review the present tax system which is excessively preferential to large corporations and the wealthy and instead work to boost ordinary household incomes.

Appeal proponent Urano Hiroaki said, “Taxes should be levied according to people’s ability to pay based on the Japanese Constitution,” at a press conference held on the same day at a members’ office building of the Lower House in Tokyo.

Another appeal proposer Koyo Kyoji said, “Many small business owners just barely manage to pay the consumption tax by resorting to cut costs and employees’ wages because if they fail to pay the tax, they won’t be able to get a loan. A majority of them will no longer be able to run their businesses if the consumption tax rate rises to 8% or 10%.”