Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

(Abridged)

REPORTER:This question is with regard to the interpretation of Article 104 of the supplementary provisions of the Partial Amendment of the Income Tax Act, etc. Supplementary provision Article 104 of the fiscal 2009 taxation system indicates that during fiscal 2011 the necessary legal measures will be implemented. Do legal measures, when used here, refer to the submission of a bill? Or, does this mean the actual passing of a bill?

CHIEF CABINET SECRETARY FUJIMURA:The Government's expect understanding of supplementary provision Article 104 is that a bill stipulating the concrete details of a fundamental reform of the taxation system, including consumption tax, will be submitted to the Diet by fiscal 2011. Our interpretation is that the Government is legally obligated to fulfill this duty. Furthermore, this is not based on the premise that economic conditions improve by the time of the bill's submission. The proposal of the Government and ruling parties indicates that we will submit a bill on the fundamental reform of the taxation system in accordance with the path laid out in supplementary provision Article 104.

(Abridged)