Tax

October 2007

Fukuda To Create Govt-Ruling Bloc Panel To Tackle Tax Reform
Prime Minister Yasuo Fukuda on Monday instructed Finance Minister Fukushiro Nukaga to establish a government and ruling coalition panel to discuss tax code and social security reforms. This move is aimed at spurring full-fledged discussions about a possible consumption tax hike and other measures designed to fill government coffers, especially with the national treasury's basic pension burden being raised to one-half in fiscal 2009 from the current one-third. At a meeting with Nukaga, Fukuda cited the need for government and ruling coalition discussions on the reforms. Referring to the compilation of next fiscal year's budget, Fukuda said, "I ask that the budget incorporate necessary spending cuts." He also called for discussions on revitalizing rural areas and promoting environmental protection, while maintaining the government's vow to achieve a primary balance surplus in fiscal 2011. Later that evening, Fukuda told reporters that tax reform discussions should be carried out at an early time. "We cannot keep putting them off," he said. (The Nihon Keizai Shimbun, October 02, 2007)