Review of special taxes, with a view to raising 1 trillion yen - interview with Ishin Tax Commission Chairman Hagiwara

In an interview with Jiji Press, Japan Restoration Association chairman Hagiwara Yoshihiro stated that the government would like to review the ``Special Tax Measures'' (tax special measures), which reduce the tax burden on businesses and individuals for specific policy purposes, with a view to generating 1 trillion yen in financial resources.

Tax review, focus on breaking down the “sanctuary”; success or failure of proactive fiscal policy

-The government is positioning the tax review as one of the sources of revenue for reducing the consumption tax on food products. However, the government's self-inspection has determined that only three out of 121 cases are abolished.

It's not completely satisfying. However, it is difficult for ministries and agencies to say they will stop doing what they have requested as necessary. It is the role of politicians to state the criteria and take responsibility for saying whether something is necessary or not. Taxes are exceptions to the tax system. It must be effective because it goes against all of the principles of ``fairness, neutrality, and simplicity.'' The basic stance is to ``completely abolish ineffective taxes.''

-The government is promoting efforts under the banner of a ``Japanese version of DOGE,'' which is modeled after the U.S. Department of Efficiency.

The Japanese version of DOGE is specified in the coalition government agreement. We will spare no effort in cooperating.

- House of Councilors Secretary-General Naoki Inose said at the House of Councilors Budget Committee, ``More than 1 trillion yen in financial resources can be created by abolishing special taxes related to the Small and Medium Enterprise Agency and the Ministry of Land, Infrastructure, Transport and Tourism.''

This will serve as a guideline. The possibility of 1 trillion yen is not zero.

-The Liberal Democratic Party is reluctant to review the tax system.

The Meiji Restoration has no industry organizations behind it. The raison d'être is to speak out to the well-organized Liberal Democratic Party. First, say it out loud. We can say this because we have no constraints. There will be some conflicts, so I don't think we'll get 100 points, but I want to reach an agreement in the end.

-An increase in defense spending is expected to be specified in three security-related documents to be revised within the year. There is also talk of the possibility of raising corporate taxes as a source of funding.

First is spending reform. Japan's corporate tax rate is the highest among the seven developed countries (G7). There are doubts about the easy hike theory.

- The 2027 tax reform will also require correction of local tax revenues that are unevenly distributed in Tokyo.

We need to think about whether we are okay with the way we are now. We believe that tax revenue and authority should be transferred to local governments as much as possible. I want to explore the ideal form.