Japanese Finance Minister Attacks Tax Bureau

by Mary Swire, Tax-News.com, Hong Kong

03 April 2002

Speaking at a press conference on Tuesday, Japanese Finance Minister Masajuro Shiokawa launched an attack on the Government's tax bureau, accusing them of failing to recognise the urgency of Japan's economic problems.

Economic advisers on the Council of Economic and Fiscal Policy are due to reveal plans for a major overhaul of the country's tax system in June. However, Mr Shiokawa told reporters that the Finance Ministry's tax bureau and the Governmental tax advisory panel have been dragging their heels regarding tax reforms.

'The government panel is in seclusion on a mountain top, and so is the ministry's tax bureau. They are only guarding (the status quo) and not forward-looking at all,' he accused, adding that: 'It's as if they are denying the significance of tax in economic policy.'

The Finance Minister also hit out at Mizuho Holdings, one of the country's largest banks, for rolling out a new business structure on Monday which caused its ATM system to fail on the first day of the new fiscal year.

'Financial institutions are lacking seriousness,' he complained. 'The ATM system going down - how can such a stupid thing happen in this day and age?'

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