Following is the gist of remarks made by Mr. Takashi Imai, Chairman, Keidanren, at a press conference following Board of Councillors' Meeting/Emergency General Assembly 28 January 2002. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
(Asked of his views over tax reforms)
Keidanren's Committee on Taxation is almost coming to its conclusion on the new proposal, which will be discussed at February 4th Chairman and Vice Chairmen's meeting. Keidanren will also propose on how to make effective use of tax system to improve Japan's economy -- such as inheritance tax and housing related inheritance subsidy. I am personally concerned of the fact that fewer numbers of Japanese are actually paying taxes because of various deductions and incentives -- there is a calculation that between 25% to 40% of employed Japanese are not paying income tax, or 70% of corporations are not paying corporate tax. As Japan's tax system is skewed towards direct taxation, and as aging of population rapidly emerging, a thorough overhaul of entire tax scheme is necessary, with the concept of broad, simple, and fair and transparent system. On the indirect tax side, for example, the government does not collect consumption tax if sale of a merchant is less than 30 million yen per year -- another area necessitating an overhaul. And I think this is what the Prime Minister Koizumi's tax reform is looking for. The most needed domain of discussion exist in the proportion between benefit and burden, proportion between tax and pension, proportion between national tax and local taxes, and the appropriate ratio of purpose-specific taxes.
(Asked on his views over rising long-term interest rate in Japan)
I am worried about it. To make sure that the problem wouldn't get worse, Prime Minister Koizumi's plan must be kept. The Diet must also pass the fiscal 2002 budget, as planned, quickly.
(Asked of his views over the process of Keidanren-Nikkeiren merger)
We have come a long way in the last two and half years. The merger is what the time has called for. The only remaining task is to decide on key personnel posts and to draft the new organization's business plan -- both of which will be completed by April. Merger will create a favorable condition within the business community in discussing and proposing over economic and fiscal policies. With the power of Nikkeiren, we could also integrate voices from regional business communities, too. As the result, the new organization will be more active in proposing and in making sure that will of business community would be reflected in politics -- in this sense, the relationship between business and politics would have to be more intense.