 Let us foil consumption tax increase plan with grass roots movement Determined to foil the government plan to increase the consumption tax rate, the Liaison Council of Various Circles to End Consumption Tax held a national meeting on November 29 in Tokyo. National Federation of Traders and Producers Organizations (Zenshoren) President Kokubu Minoru in his speech recalled that the Council was set up in 1987 when the consumption tax was introduced as a major indirect tax. He said that more than 2,700 regional chapters were set up across the country and became influential in getting a bill to abolish the consumption tax approved by the House of Councilors. He said that today, when the public under the Koizumi Cabinet have to bear the burden of 7-trillion yen for the tax, with the government planning to increase the tax rate, the Council should develop a national movement to stop the tax increase. Another speaker criticized the government view that the economy is improving to the point where the consumption tax rate can be increased and that the tax increase is needed to fund social services and rehabilitate national finances. He said that a consumption tax rate of 8 to 10 percent will adversely affect production from 8 to 13 trillion yen and reduce 1.3 to 2.2 million workers' jobs. Noticing that 52 percent of people at the grassroots are opposed to the consumption tax increase even to fund social services, the meeting proposed to develop the movement by collecting local opinions in opposition to the planned tax increase. The Council on the same day held a symposium entitled "No consumption tax increase" in Tokyo, with 220 people attending. Five panelists spoke on the consumption tax as a regressive tax in which burdens are heavier on people with lower income, and that the function of taxation in redistributing income is being undermined. A representative of the National Confederation of Trade Unions (Zenroren) said, "Now when the average wage of workers has declined for six straight years and more than 20 percent of workers have an annual income of 2 million yen or less, people have the right to discuss the tax system." (end) |