Public Policy Planning & Consulting Co. (SEISAKU-KOUBOU) is a public policy consulting firm based in Tokyo, covering broad policy areas such as economic policy, fiscal policy, regulatory policy, administrative reform, international trade and investment, etc.
PPPC provides consulting and briefing services to the clients in the central/local governments, Diet, local assemblies and the private sector.

This blog is aimed at providing general information, latest updates and some of our analytical reports about Japan's public policy in English.
The contents include;
- updates on some important government councils, especially those in which our executive officers serve as the members,
- weekly reports on latest news in Nagata-cho, the political center in Japan, (partially).
- analytical reports and articles by our members and distinguished experts outside the firm,(partially).

12.07.2014

Comparison of Party Platforms (1): Policy on Consumption Tax and Finance

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
       More transparency of finance through financial and accounting reforms
       Social security reform such as rationalization
       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.
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
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


(charts drafted by PPPC)

No comments:

Post a Comment