INTERVIEW: LDP Tax Chief Aims for Sustainable Wage Hikes

Politics Lifestyle

Tokyo, Nov. 20 (Jiji Press)--Yoichi Miyazawa, the tax policy chief of Japan's ruling Liberal Democratic Party, has reiterated his eagerness to realize a tax system that encourages companies to carry out sustainable wage hikes.

"It's (important) that (wage hikes) are not one-off but fully revitalize the economy and lead to growth," Miyazawa, chairman of the LDP's Research Commission on the Tax System, said Friday in an interview with media organizations including Jiji Press.

On a possible consumption tax hike, he noted that fiscal spending grows as the number of people eligible for social security programs increases even if related systems remain unchanged.

"It is certain that a consumption tax (increase) will be discussed as a considerably possible option" in the future, Miyazawa said.

Asked about a proposal to reduce tax breaks for housing loan borrowers by lowering the tax exemption rate from current 1 pct to 0.7 pct, Miyazawa said the current system brings about profits to many borrowers who take out housing loans at an annual interest rate of 0.4 pct. "This needs to be corrected," he said.

[Copyright The Jiji Press, Ltd.]

Jiji Press