Tokyo government loses bank tax suit
The Tokyo District Court on March 26 ruled that the local bank tax levied by the Tokyo Metropolitan Government, based on gross profits, is illegal, and ordered the local government to repay 72 billion yen to Tokyo's 18 banks.
The Tokyo Metropolitan Government in April 2000 introduced the bank tax on Tokyo's major banks with assets of more than 5 trillion yen. In October 2000 that year, 18 banks sued the Tokyo government, claiming that it was illegal to put a special tax targeted on banks.
Fudesaka Hideyo, Japanese Communist Party policy commission chair, stated, "It is very appropriate to put a tax on banks that benefit enormously from the extremely low interest rate policy and tax relief." (end)