3. We will not tolerate a revision of the tax system that targets Tokyo

As Tokyo boldly advances initiatives as the engine driving Japan’s growth even as the population declines, the central government, arguing that it must correct tax revenue inequalities among Japan’s local governments, has started deliberations to further seize financial resources from Tokyo. However, the inequality in tax revenues asserted by the central government has already been adjusted through the local allocation tax, and the redistribution of local corporate taxes currently under study by the central government has already been settled through previous revisions to the tax system. On countless occasions to date, the central government has revised the tax system to target Tokyo, and has without sound reason taken away fiscal resources from Tokyo amounting to six trillion yen. And, it must be said that the central government’s actions are completely baseless this time as well.

Just as I have stated many times before, what we really need to pursue for growth of the entire country is enhancing sources of tax revenue in a manner befitting the roles of local governments based on the principles of decentralization. The central government’s attitude of turning a blind eye to this essential issue and focusing only on short-term solutions is absolutely unacceptable. The stopgap measures that have been implemented over and over in the past are not what is needed now. Rather, it is necessary to confront the issue of how local tax revenues should be from a broad perspective with a view to true decentralization. Through the new study committee we will launch at this time, I hope to deepen fundamental debate with the members of this Assembly, the municipalities, and experts.

Last month, I also asked for advice from the Tokyo Metropolitan Tax System Study Committee regarding matters such as how a tax system that establishes true local autonomy should be overall. Based on discussions aimed at achieving growth for Tokyo and Japan, we will strongly object to the irrational review of the tax system, while spreading understanding among the people of Tokyo and other prefectures as well.