PM must retract decision to increase consumption tax to 8%: Shii

October 2, 2013

Japanese Communist Party Chair Shii Kazuo on October 1 demanded Prime Minister Abe Shinzo retract his decision to increase the consumption tax rate to 8% April next year arguing that it will impose the largest-ever tax burden of eight trillion yen on the general public.

Commenting on Abe's announcement of implementing a six trillion yen economic stimulus plan, Shii said at a press conference that it is irrational for him to use the six trillion yen for boosting the economy while admitting to the possibility that the massive tax hike with eight trillion yen would adversely affect Japan's economy.

What the Abe Cabinet intends to do as "stimulus measures" is to carry out more large-scale public works projects, abolish the special corporate tax for disaster recovery, and provide to large corporations further tax breaks such as tax cuts on investment, said Shii.

Citing that the prime minister expressed his intention to start discussions on corporate tax cuts without delay, Shii said that it does not make sense to ease tax burdens on large corporations having huge internal reserves of 270 trillion yen while imposing on the general public another eight trillion yen in tax burden.

Shii, in particular, pointed to the abolition of the special corporate tax for disaster recovery as illogical. The Abe Cabinet decided to end the collection of the special tax from corporations next year, one year earlier than the initially planned three years, though imposition of the special reconstruction income tax on the general public will continue another 25 years. This, of course, has provoked anger among people across Japan, especially in the 3.11 disaster-hit region, Shii stated.

If the Abe government conducts a massive tax hike at a time when people's financial conditions are deteriorating as shown in the fact that workers' average monthly salary decreased for 15 months in a row, it will bring about disaster in both people's lives and the Japanese economy and then will lead to a fall in other tax revenues, Shii said.

He went on to say that to squander tax money under the "economic stimulus measures" will also undermine the nation's financial health. It is obvious that Abe's tax hike and economic measures will put the Japanese economy and finance in a detrimental situation, he stressed.

Shii said that the JCP will make the utmost effort to organize political parties, organizations, and individuals to block the consumption tax hike scheduled for next April.

The Central Committee of the Japanese Communist Party
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