Japan Press Weekly

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2014 November 19 - 25 [POLITICS]

Smaller business owners call for cancellation of another consumption tax hike

The All-Japan Commerce and Industry Organization Association (Zenshoren) on November 19 released a statement calling on its members to use their votes in the coming general election to foil an attempt to further increase the consumption tax rate to 10%.

Zenshoren represents about 200,000 small- and medium-sized businesses across Japan.

On the previous day, Prime Minister Abe Shinzo announced that he will dissolve the House of Representatives and call a snap election to ask for a public mandate for his decision to raise the sales tax rate to 10% in April 2017.

At a press conference Zenshoren held in the Diet building, small business owners who are Zenshoren members reported on how the present tax rate which rose to 8% in April has negatively affected their businesses.

Fujikawa Takahiro, who runs a packing materials company in Osaka City, said, “I have difficulties in shifting the consumption tax increase to retail prices as my clients are demanding price cuts.”

Kobayashi Shuichi, a tofu-shop owner in Tokyo, said that he will continue to fight to block the second tax hike which in his opinion would destroy small businesses such as his as well as people’s livelihoods.

After the press conference, Zenshoren held a rally. In the rally, Japanese Communist Party parliamentarians Sasaki Kensho (Lower House), Kurabayashi Akiko, and Kira Yoshiko (both Upper House) expressed their determination to work hard in the upcoming general election in order to increase public opposition to the 10% consumption tax plan. Zenshoren handed over 510,000 signatures in a petition opposing a further tax hike.