July 12, 2010

JAMA Comments on the Results of
Japan's 22nd Upper House Election

Toshiyuki Shiga, Chairman


Assessing the results of the recent [July 11] Upper House election in Japan, JAMA encourages the government and ruling parties to give careful consideration to the sentiment of voters as reflected at the polls. Accordingly, they should aim to assure governance that earns trust domestically as well as abroad, while strengthening discussions with the opposition parties and other stakeholders in a concerted effort to achieve economic and social stability and relieve the public of its uncertainties over the future.

With regard to the particularly pressing issue of rebuilding the nation’s finances, we look forward to continued efforts to eliminate fiscal waste and to substantive action being taken in terms not only of devising a suitable approach to the consumption tax but of reviewing existing policies, on the path to reform. Furthermore, in order for Japan, which has begun to show signs of economic recovery, not to fall back into another downturn, JAMA favors the adoption of measures targeting the swift implementation of the scenario set forth in the government’s “New Growth Strategy” and other policy statements, in a concerted push to bring about a genuine resurgence of the national economy.

Finally, on behalf of the automobile industry, JAMA strongly supports steps to ease the burden of Japan’s automobile acquisition and tonnage (weight) taxes on vehicle users—steps which also were called for by the ruling Democratic Party of Japan in its electoral manifesto. By the same token, from the perspective of sustaining and strengthening international competitiveness, we urge prompt action to lower Japan’s effective corporate tax rates.