Japan Prefectures Urge Measures to Cope with Tax Revenue Falls

Tokyo, Nov. 26 (Jiji Press)–The governors of Japan’s 47 prefectures urged the central government Wednesday to implement measures to help them cope with expected declines in local government revenues resulting from the planned abolition of the provisional gasoline and diesel tax surcharge. The National Governors’ Association made the request at a meeting hosted by the central government at the prime minister’s office. Prime Minister Sanae Takaichi replied that the government will consider the impact on local tax revenues. While the surcharge abolition is expected to reduce local government revenues by some 500 billion yen per year, the prime minister said that the central government will “ensure necessary general revenues.” Regarding her administration’s economic package to tackle inflation, Takaichi sought the cooperation of the governors to implement it promptly. “It’s extremely important to improve and strengthen local government finances to make the most of the growth potential of regional areas,” said Nagano Governor Shuichi Abe, head of the association. Also at the meeting, the governors called for correcting tax revenue gaps among local governments, noting that disparities in administrative services are widening. They urged the central government to promote uniform child-rearing support measures across the country. END [Copyright The Jiji Press, Ltd.]