Kan to zero in on legislation by FY 2011 toward tax hike+

TOKYO, Jan. 17 Kyodo -
Japan must finish with legal preparations by fiscal 2011 to implement
fundamental tax reform, including a hike in the politically sensitive
consumption tax, a senior government official said Monday.
''Both the ruling and opposition camps should faithfully observe'' a fiscal
2009 tax reform law that called for taking necessary legal steps by the next
fiscal year which starts April 1, Deputy Chief Cabinet Secretary Hirohisa Fujii
said on a television program.
Prime Minister Naoto Kan also told reporters in the evening that the law
enacted in fiscal 2009 is ''calling for cross-party talks'' on tax and social
security reforms.
But differences of opinion have already become apparent in the Cabinet, which
was reshuffled Friday.
Chief Cabinet Secretary Yukio Edano, in contrast to Fujii's remarks, said that
the government led by the Democratic Party of Japan may not take the law into
account when discussing tax and social security reforms.
The law was created by the coalition between the Liberal Democratic Party and
New Komeito party before the DPJ took control of the government in September
2009.
The law's clause, however, says that the government must carefully assess the
economic situation to decide on when to raise the tax.
Kan has said his government will present a tax and social security reform
proposal by around June, while so far not specifying any legislative schedule.
Kan decided Monday to hold a meeting of ministers this week to accelerate
discussions on tax and social security reforms, according to DPJ lawmakers.
Kan is trying to craft a blueprint for the reforms in the weeks ahead and with
it he is hoping to open cross-party talks on the issues.
Kan has said that securing sustainable financial resources for Japan's future
social security system, burdened by the rapid aging and decline of its
population, is one of the biggest agenda items.
Speaking at a news conference, Edano said the DPJ's initiative to improve the
country's social security system is based on the party's will and even if there
are similarities, it is ''not equal to the law.''
Still, Yoshito Sengoku, Edano's predecessor until Friday, said on a separate TV
program, ''To establish the foundation for future social security, we have to
ask the people for an increase in tax revenues, whether it will be the
consumption tax or not.''
The meeting will be attended by ministers in charge of the reforms, including
economics minister Kaoru Yosano, national policy minister Koichiro Gemba, Chief
Cabinet Secretary Yukio Edano and Fujii -- who was the first finance minister
after the DPJ's ascent to power in 2009.
==Kyodo
2011-01-17 23:41:53


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