Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Friday, July 30, 2010, from 9:43 a.m. to 9:48 a.m.)

[Opening Remarks by Minister Jimi]

I have no particular comment to make today.

[Questions & Answers]

Q.

The Financial Tax System Study Group will start meeting today. I believe that the Summary of Issues contains many issues for which contrasting views are presented - for example, the reduced securities tax rate. Please give us your general thoughts as to how you are wishing to carry on the discussion deciding on the basic securities and financial taxation.

A.

As you know, we called for public comments from June 22 to July 12 with the view to finalize our requests for the Fiscal Year 2011 Tax System Revision. The results of this comment collection effort were announced on July 29. For securities taxation, a summary of issues was drawn up by the Financial Tax System Analysis Meeting of the Parliamentary Secretary, or under the FSA, and was announced on July 29, as you know. I understand that the venue of discussion will now be shifted from the Financial Tax System Analysis Meeting chaired by the Parliamentary Secretary to the Financial Tax System Study Group chaired by Senior Vice Minister Otsuka for further deliberations.

Since the deadline for submitting tax reform requests is the end of August, as you know, we will work toward the end of August for that purpose by referring to stakeholder inputs, including the results of the public comment collection and the conclusion of the Tax System Study Group.

I might add my personal comment, though - the action plan for the New Growth Strategy, which we developed recently, advocates growth of financial institutions themselves and it is therefore quite critical for various financial segments, including securities, to have as many trading activities as possible, which makes any potential impact on them from taxation quite significant. At the same time, there are the principles of simplicity, fairness and neutrality in taxation that we should bear in mind as I realize, from many years of my involvement in the area of taxation when I was with the ruling party, that this is the kind of area in taxation that is traditionally prone to general criticism as a tax break for the rich. That being the case, in the context of a growing consensus on international cooperation between nations - each of which has its own economic, financial, and fiscal policies and is faced with its own challenges in the wake of the Lehman crisis, and is also founded on its own economic, historical, and traditional qualities - we are hoping to ultimately make a decision on how to add more vitality to financial and economic activities, bearing in mind the points that I have just made and incorporating, as a democratic nation, inputs from various people.

(End)