Top �� What's up around the Prime Minister �� June, 2003

Mid-Term Report by the Tax Commission Tuesday, June 17, 2003 Prime Minister Junichiro Koizumi received the Mid-Term Report by Mr. Hiromitsu Ishi, the Chair of the Government Tax Commission at the Prime Minister's Official Residence, entitled "A Sustainable Tax System for Japan's Aging Society," which compiled mid- to long-term modalities for the tax system. The Report was compiled at the General Meeting of the Tax Commission held in that morning. The Report underlines the importance of securing equity in tax burdens in order to respond to the increasing burdens on the social security in the future stemming from the declining birthrate and aging society and emphasizes the commitment to aim for ensuring equity between different generations. Furthermore, regarding individual income tax, the Report stresses the need to make efforts to regain its basic functions as a main tax by removing distortions and inequity in the current tax system. At the same time, the Report points out that the consumption tax has become entrenched in the people as one of the main taxes and indicates the view of the Commission that it is important to enhance the role of consumption tax. In addition, the Report proposes the guidelines for such matters as corporate tax, inheritance and gift taxes, individual indirect taxes, decentralization and tax system, and other issues.