The
Lower House general election was officially announced on December 2 and the
political parties entered the ballot race. The ruling and opposition parties
will struggle over 475 seats (295 small districts, 180 proportional
representation in 11 blocs) for 12 days until December 14.
The
main policy issues for the election include the continuance of the Abenomics, national
security legislation including exercising the right to collective self-defense,
resuming operation of the nuclear power plants, etc.
This
week, let us summarize the parties’ policy on the consumption tax and financial
reconstruction which Prime Minister Abe recognizes as the top-priority issue in
the campaign.
Liberal
Democratic Party
Komeito
Democratic
Party of Japan
Japan
Restoration Party
Party
for Future Generations
Japan
Communist Party
1.
Consumption
Tax
|
LDP
|
l To be hiked to 10%
in April 2017
l Reduced tax rate to
be introduced at the time of tax-hike after considerations on the subject
item, finance and revenue and acquiring consents of relevant actors and the
public
l All the revenue from
the consumption tax to be spent for social security
|
|
Komeito
|
l Reduced tax rate to
be introduced at the time of tax-hike to 10% in April 2017
l Subject item,
finance and revenue of reduced tax rate to be considered
|
|
DPJ
|
l Consumption tax-hike
to 10% to be extended (reasons include the worsened economy due to the
Abenonomics, non-execution of social security stabilization and Diet-members
cutback)
l Consideration on
tax-exemption combined with subsidy as measures for low-income brochures
l Revenue from
consumption tax to be limited to social security
|
|
JRP
|
l Consumption tax-hike
to 10% to be suspended
l Opposition to
deletion of the “economy provision” that leaves room for extension of the
tax-hike
l Consumption tax to
be shifted to local tax. Setting of the rate to be delegated to the local
governments as primary tax revenue
l Tax-exemption
combined with subsidy to be realized on assumption of the “my number” system
(because of the low cost-benefit performance of reduced tax rate and all-out
subsidy)
|
|
Future
|
l Consumption tax-hike
to 10% to be extended
l Securing fairness of
the consumption tax by invoice system
l Following conditions
to be met as premise for tax-hike
①
More
transparency of finance through financial and accounting reforms
②
Social
security reform such as rationalization
③
Economic
and social reform to realize sustainable economic growth
l Consumption tax to
be shifted to local tax
|
|
Communist
|
Consumption
tax-hike to 10% to be suspended, ways not to depend on the consumption tax to
be groped
|
2.
Financial
Reconstruction
|
LDP
|
l Simultaneous
realization of economic growth and financial reconstruction
l Primary balance to
be shifted to surplus by 2020, and financial deficit to GDP will be
accordingly decreased steadily
l Specific plans to be
decided by the next summer
l Administrative and
financial reform will be continued
|
|
Komeito
|
l Primary balance to
be shifted to surplus by 2020
l “mid-term plan” will
be drafted for realization of the goal
|
|
DPJ
|
l Act on promotion of
the financial healthiness to be submitted, primary balance to be shifted to
surplus by 2020
l Promotion of “appropriation
reform”, “growth strategy” and “revenue reform”
l Relooking on the distributive
public works, and steadily implementing the infrastructure works for
reconstruction or which are truly needed
|
|
JRP
|
l Act on Financial Responsibility
to be submitted
l Schedule toward the “primary
balance zero” premised on “appropriation reform”, “growth strategy” and “revenue
reform” to be drafted
l Revenue to be
created through “self-cutting reforms” and “administrative reforms”
30% cut
on the Diet expenses, Diet seats, cost cuts on the central government
personnel fees, downsizing of the independent administrative agencies and
public-private funds, disposition of government assets, integration of tax-collection
agencies into Revenue Agency, etc.
|
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Future
|
l Act on Financial
Responsibility toward realization of public accounting reforms
l Mid- and long-term
financial plans to be drafted toward strategic financial management
l Large cutback on the
transferred appropriateness which are causing wastes and distributive budgets
and relooking on the tax
|
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Communist
|
l Tax reform penetrating
the principle of capability by revising the tax-exemption to the wealthy
brochures and major companies
l Appropriation on
public works projects or military expenses to be reduced
l Tax-increase to be
sought through economic reforms that increases the national income by
utilizing the financial reserves of the major companies
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(charts drafted by
PPPC)
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