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LDP, Komeito, Nippon Ishin Discuss Free High School Steps

time2 days ago

  • Business

LDP, Komeito, Nippon Ishin Discuss Free High School Steps

News from Japan Politics Jun 4, 2025 19:00 (JST) Tokyo, June 4 (Jiji Press)--Japan's ruling Liberal Democratic Party-Komeito coalition and opposition Nippon Ishin no Kai (Japan Innovation Party) on Wednesday reached a broad agreement on issues that should be addressed to realize free high school education. The issues include the scope of students who are eligible for free high school tuition and how foreign students are treated. The parties aim to reflect their opinions to the government's annual economic and fiscal policy guidelines, due to be completed by the end of June. On foreign students, the parties said that their treatment should be decided with consideration for their diverse situations, including students from high-income households who go to international schools with high tuition fees, or those from low- and middle-income households attending ethnic schools. The parties also agreed that tuition aid will be provided to schools, not directly to students. They also underlined the need to prevent opportunistic tuition hikes by private schools and to boost support for public schools. [Copyright The Jiji Press, Ltd.] Jiji Press

Tourist Consumption Tax Exemption Under Fire Over Abuse
Tourist Consumption Tax Exemption Under Fire Over Abuse

Japan Forward

time22-05-2025

  • Business
  • Japan Forward

Tourist Consumption Tax Exemption Under Fire Over Abuse

With rising prices, public focus on potential consumption tax cuts is growing. Simultaneously, though, debate is also heating up around Japan's tax exemption system for inbound foreign tourists. The government insists that the exemption is essential to its goal of becoming a "tourism nation." However, lawmakers from both ruling and opposition parties argue that the system unfairly privileges foreign visitors. On top of that, there has been frustration with the rampant resale of duty-free goods by foreigners abusing the system. Although set to transition to a refund-based model in November 2026, expectations for increased tax revenue have kept calls for its full abolishment alive. Liberal Democratic Party lawmaker Kenji Nakanishi called for an end to the duty-free system. Speaking at a Diet committee session on finance and taxation in December 2024, he stated, "The duty-free system should be scrapped." He argued that, given the weak yen and strong purchasing appetite among inbound tourists. Eliminating the tax exemption, he argued, would have little economic impact. According to government data, foreign tourists in Japan made ¥1.59 trillion JPY (approximately $10.2 billion USD) in duty-free purchases in 2023. If the 10% consumption tax had been applied, it would have translated into about ¥160 billion ($1.03 billion) in additional tax revenue. Japan is expecting even more tourists in the coming years, especially with events like the ongoing 2025 Osaka Expo. As a result, duty-free purchases seem set to continue increasing. Osaka Governor Hirofumi Yoshimura (leader of Nippon Ishin no Kai) echoed this sentiment during a press conference on April 21. "It only makes sense to ask wealthy foreign visitors to pay the same consumption tax as Japanese citizens," he stated. Fueling the abolition movement is the widespread abuse of the current system. Foreigners posing as tourists have been found purchasing large volumes of tax-free goods. Many then resell these items in their home countries, adding the tax amount to turn a profit. The government compiles statistics on taxpayers and exemptions. According to those, between FY2022- 2023, customs detected only about 10% of departing passengers who purchased over ¥100,000 million (approximately $700,000 ). Since customs checks at departure are voluntary, some travelers reportedly avoided inspection altogether by, for example, refusing to present their passports. Moreover, in over 90% of the cases that were detected, the travelers no longer had the duty-free goods in their possession. This made tax collection nearly impossible. As one government official noted, "Even if we impose taxes, they're almost never paid." To combat this, the government has decided to implement a "refund-based system" starting November 2026. Under this model, visitors will pay the full price, including tax, and receive a refund at departure after customs confirmation. A source familiar with the tax system said, "This should effectively eliminate resale abuse." Still, calls for abolition persist — largely due to the appeal of increased tax revenue. International tax principles hold that consumption taxes should be applied in the country where a product is consumed. That's why Japan doesn't tax exports. Since foreign tourists theoretically take their purchases abroad, these goods are considered de facto exports and currently qualify for exemption. Prime Minister Shigeru Ishiba has defended the system. In a February 4 Diet session, he stated, "There are purchases that can only be made in Japan," underscoring the tourism value. However, the United States has no value-added tax and offers no exemptions in most states. And the United Kingdom abolished its tax exemption for visitors after leaving the European Union in 2020. Yuichiro Tamaki, head of the Democratic Party for the People, also called for revisiting the system on his YouTube channel this spring. He cited examples like the US and UK and argued that Japan should redirect tax revenue toward areas that improve domestic prosperity. With the Upper House election approaching this summer, the issue is likely to remain on the political agenda. Kagawa University Professor (of Tax Law) Takashi Aoki points out that the global standard is to apply consumption taxes in the country where goods are actually consumed. In Japan, services like meals and lodging are taxed because they're used domestically, but goods taken abroad are exempt, in line with this principle. Eliminating the exemption as some have proposed, he warns, would place Japan at odds with international norms. However, moving to a system that refunds taxes when goods are taken out of the country is in line with international norms. He offers the example of automakers purchasing parts in Japan for export vehicles: while they pay consumption tax at the time of purchase, the tax is refunded upon export since the final product is consumed overseas. Ending this refund system would disrupt trade and violate widely accepted global practices, something Japan cannot change unilaterally. The same logic, Aoki explains, should apply to duty-free shopping by tourists. Although reselling goods under the guise of tourism is essentially tax evasion, the real issue lies in enforcement. "Cracking down on abuse is necessary," he says, "but scrapping the entire system just because some people exploit it is an overreaction. The priority should be stopping the fraud, not eliminating the exemption itself." According to the National Tax Agency, only items purchased within 90 days of departure will qualify for a tax refund. Duty-free stores will electronically transmit purchase records to the agency's management system. At departure, customs officials will verify whether the traveler is taking the goods out of the country. If confirmed, the tax will be refunded to the buyer via bank transfer or credit card. The new system will also abolish the current ¥500,000 ($3,200) daily cap on tax-free consumables such as cosmetics and alcohol. For purchases exceeding ¥1 million (pre-tax), stores will be required to report product names and serial numbers. This measure aims to prevent fraud or product substitution. Additionally, the distinction between consumables and general goods will be eliminated, streamlining procedures for retailers. However, concerns remain that increased customs inspections could cause congestion at airports. Authorities will need to ensure adequate preparations are in place before the system rolls out. (Read the article in Japanese .) Author: The Sankei Shimbun

The Science Council of Japan Has Failed — Now Shut It Down
The Science Council of Japan Has Failed — Now Shut It Down

Japan Forward

time14-05-2025

  • Politics
  • Japan Forward

The Science Council of Japan Has Failed — Now Shut It Down

Founded in 1949 to ensure science serves peace rather than war, the Science Council of Japan (SCJ) has drifted far from its mission. Today, it operates more like a closed guild of ideologues than a national body representing the interests of science or the Japanese people. The Lower House Cabinet Committee approved the latest reform bill targeting the SCJ on May 9. Proposing turning the SCJ into a government-supported independent corporation, it received support from the Liberal Democratic Party (LDP), Komeito, and Nippon Ishin no Kai. However, rather than resolve the Council's chronic problems, the bill merely rebrands a broken institution. Despite receiving nearly ¥1 billion JPY ($46.4 million USD) in annual public funding, the SCJ has failed to contribute meaningfully to national priorities or public needs. When Japan needed scientific clarity on matters such as the Fukushima ALPS treated water release or Russia's invasion of Ukraine, the Council offered no meaningful guidance. Takaaki Kajita, former SCJ president and Nobel laureate, admitted during Diet testimony on May 7 that the Council failed to issue a clear position. "There were no special requests from the government for deliberation before the policy was decided," Kajita said. He further acknowledged that while most members agreed with the International Atomic Energy Agency's assessment of safety, the Council did not make that position public. In 2020, then-Prime Minister Yoshihide Suga refused to appoint six of the SCJ's recommended nominees, citing concerns over its ideological uniformity and the lack of transparency in the selection process. This triggered backlash from academics and opposition parties, but it also exposed how insular and partisan the SCJ had become. The concern deepened in April 2024, when, during an SCJ general meeting, an unnamed member voiced anxiety about the 2025 reform bill. While staying anonymous, the member warned that "people on the right will start joining the Council." LDP Diet member Hitoshi Kikawada reported this quote during a Diet session on May 7, 2025. Chairperson of the National Public Safety Commission Manabu Sakai answers questions at the House of Representatives Cabinet Committee. May 9. Responding, SCJ's former president Kajita tried to defend the Council's diversity, stating: "We considered diversity in the selection process. The presence of members with a range of views is a strength." However, as Kikawada pointed out, the very fact that such comments were made shows that "certain individuals have been excluding those with differing views." Nippon Ishin no Kai member Keie Miki also condemned the internal SCJ remark. "Whether someone leans left or right shouldn't matter. Science progresses precisely because it includes a variety of perspectives," she stated on May 9 during the Cabinet Committee hearing. Critics of the bill claim it endangers academic independence. One of the loudest voices has been Sayaka Oki, a University of Tokyo professor specializing not in science, but in the history of science. On social media, Oki accused the government of trying to "dismantle" the SCJ. She also warned that Japan might follow Russia's path, where President Vladimir Putin allegedly muzzled scientists and rewrote history education ahead of his invasion of Ukraine. Oki's claims were swiftly criticized in the media and online. Scholar and commentator Yosuke Naito likened Oki and the SCJ to the palm tree in Russian writer Vsevolod Garshin's short story Attalea Princeps. As it grows proudly in a greenhouse, the tree mocks the lowly shrubs, only to wither when it breaks through the glass ceiling and is confronted with the real world. Cabinet Minister Manabu Sakai, who oversees the SCJ legislation, has repeatedly stated that the bill aims to "fundamentally strengthen the SCJ's independence and self-governance." Yet the bill retains ¥1 billion in annual public funding and creates new government-appointed roles: auditors and evaluators. Meanwhile, six former SCJ presidents — led by Kiyoshi Hirose — issued a joint statement in February 2024 demanding the bill's withdrawal. Yet Hirose's own political neutrality came into question when MP Keie Miki revealed that Hirose had previously appeared on Japanese Communist Party platforms and endorsed unified opposition candidates. "Including his name on such a statement shows the Council's lack of self-discipline," Miki remarked. In its early days, the SCJ was guided by a postwar vision of using science for peace. But in recent years, it has been more notable for what it won't do: no clear statements on security threats, no serious contributions to dual-use technology debates, and an outdated refusal to engage in any military-related research, even if it is for peace in an age of Chinese expansionism and North Korean missile threats. Science Council of Japan. Minato Ward, Tokyo (©Sankei by Ikue Mio) The SCJ has become a publicly funded platform for ideological activism. It offers little scientific contribution to national policy and no accountability to the public. Unfortunately, the proposed reforms are merely cosmetic. What Japan needs isn't a rebranded council — it needs a clean break. If scientists want to express opinions or form associations, they are free to do so in the private sector, without demanding public money. But taxpayers should not be made to fund an insular, partisan group that sees itself as above scrutiny. Let the Science Council be dissolved, and allow real science to flourish without political baggage. Author: Daniel Manning

As Trump concerns mount, Ishiba hears advice from across the aisle
As Trump concerns mount, Ishiba hears advice from across the aisle

Japan Times

time30-04-2025

  • Business
  • Japan Times

As Trump concerns mount, Ishiba hears advice from across the aisle

As his chief trade negotiator heads to the U.S. for talks with President Donald Trump's administration, Prime Minister Shigeru Ishiba is getting lots of advice, including from leaders of the main opposition parties, on how best to deal with Trump's demands — and not just on the threat of tariffs. Comments from the Constitutional Democratic Party of Japan, Nippon Ishin no Kai and the Democratic Party for the People reflect both a sense of national crisis over the tariffs and the need for the opposition to show voters they are prepared to step in and deal with the U.S., should the Liberal Democratic Party and Komeito coalition lose its majority in the July Upper House election. CDP leader Yoshihiko Noda, who served as prime minister with the now-defunct Democratic Party of Japan, is calling for a strategy toward the U.S. that emphasizes Japan's commitment to multilateral, rather than just bilateral, free trade. 'When engaging in negotiations with the U.S., it's essential to adopt a broader strategic approach to economic diplomacy. Japan should declare that it's necessary to establish an international order based on the ironclad rule of obeying the rules,' Noda told Ishiba during an April 23 party leaders' debate. 'At multilateral meetings, we can gently but firmly request a reconsideration of Trump's current tariff policy, arguing that it violates WTO rules and the Japan-U.S. Automobile Agreement,' he said. In Noda's view, Japan should pressure the U.S. by cooperating more with multilateral trade blocks the U.S. does not belong to, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) — an 11-nation group that Japan took the lead in forming after the U.S. pulled out during Trump's first term. That, Noda said, later led the U.S. to make concessions when it came time to sign the 2019 U.S.-Japan agreement on autos. Noda also spoke of the European Union's interest in the CPTPP, and suggested that Japan could engage in more economic diplomacy with the Association of Southeast Asian (ASEAN) nations, as well as with countries such as South Korea and China, which are part of the Regional Comprehensive Economic Partnership agreement — a free trade agreement among Asia-Pacific countries. 'If the U.S. unfortunately finds itself unable to continue waving the flag of free trade, Japan must be prepared to take up that flag, and lead the way in establishing a network of free trade zones,' Noda said. In emphasizing a multilateral approach, Noda is also trying to show voters how the CDP is taking a different approach to dealing with the U.S. 'Ishiba is trying to overcome problems between the U.S. and Japan by making efforts to build personal trust between the leaders of both countries, as he put his close aide (Ryosei) Akazawa in charge of negotiations," said Kentaro Yamamoto, a political scientist at Kokugakuin University. "Noda seems to be trying to emphasize the dangers of relying on such personal relationships to find solutions, and to highlight his diplomatic steadfastness.' Nippon Ishin's co-leader Seiji Maehara, on the other hand, has spoken of the need to take Trump's criticism of the U.S.-Japan Security treaty as being "one-sided" seriously, focusing on the possibility of U.S. troops being withdrawn if Japan does not pay more for hosting them. 'Once again, Trump is saying Japan doesn't have to defend the United States. This could be a bluff to increase the cost on Japan of stationing U.S. troops. However, I think it's dangerous to think of it as just a bluff,' Maehara said on April 23 during a debate with Ishiba. Even if Japan agrees to Trump's demand to increase troop stationing costs, Maehara added, the president might still threaten to withdraw them, creating more problems. 'So we need to thoroughly reexamine the nature of the U.S.-Japan security treaty by taking future risk management into consideration,' he said. Maehara and his party are in favor of revising the Constitution to legally recognize the Self-Defense Forces, which could lead to changes in the security treaty that would make Japan less susceptible to threats of U.S. troop withdrawals. Establishing a constitutional basis could allow the SDF to expand its role and make Japan's security less reliant on U.S. troops. 'If we want to ensure reciprocity in the security treaty, constitutional reform is necessary,' Maehara said. But Maehara, who has a good personal relationship with Ishiba and has cooperated with the LDP to pass the 2025 fiscal year budget, has not pushed hard for constitutional revision. His April 23 comments can also be seen within the context of Nippon Ishin's political situation at home. Former Nippon Ishin leader Nobuyuki Baba and some of his allies appear unhappy with Maehara's leadership. 'Baba has long been a proponent of constitutional reform, so perhaps Maehara brought up the issue as a way to satisfy him,' Yamamoto said. Unlike Noda and Maehara, DPP leader Yuichiro Tamaki has offered little in the way of specific advice to the government for its current and future Trump negotiation strategy. Instead, he urged Ishiba to pay more attention to the economy, especially on issues like increasing wages and abolishing the gasoline tax, two key DPP policies Tamaki hopes will appeal to voters in July. 'The government may be preoccupied with Trump's tariffs. But while it's good to look at Washington, D.C., it's also important to look at the lives of ordinary people in Japan,' Tamaki told reporters following the leaders' debate. While there is great concern among the ruling and opposition parties over the U.S. under Trump, that is unlikely to lead to a fundamental shift in policy toward the U.S. anytime soon. Both sides believe that regardless of who is president, the U.S.-Japan security alliance will remain the linchpin of Japan's diplomacy and security. At the same time, political journalist Takuya Nishimura said some parties might use the Upper House election to make minor changes to their policy platforms with the Trump administration in mind. 'For instance, the DPP promised in its 2024 Lower House platform that it would promote strategic economic diplomacy, related to free trade agreement, to preserve Japan's national interest, including automobile or agriculture,' Nishimura said. The DPP and other parties might therefore decide to make additions to their Upper House policy platforms with Trump, the U.S., and tariff negotiations in mind, Nishimura added, even if their basic approach to the U.S. remains unchanged.

2 Ishin lawmakers quit special panel probing Hyogo governor
2 Ishin lawmakers quit special panel probing Hyogo governor

Japan Times

time21-02-2025

  • Politics
  • Japan Times

2 Ishin lawmakers quit special panel probing Hyogo governor

Kobe – Two Hyogo Prefectural Assembly members from the Nippon Ishin no Kai resigned Thursday from a special committee investigating alleged harassment by Hyogo Gov. Motohiko Saito. Minoru Kishiguchi and Makoto Masuyama made the move following their questionable acts of providing information related to the allegations to Takashi Tachibana, the leader of the controversial Party to Protect the People from NHK. Kishiguchi served as deputy leader of the committee. The two submitted their resignations Thursday, which were accepted by the head of the assembly within the day. Tachibana had repeatedly made defamatory comments against Hideaki Takeuchi, a former member of the assembly and the committee, who Tachibana said he received information on Takeuchi from Kishiguchi, who on Wednesday admitted his involvement in the act. Also on Wednesday, Masuyama said on a YouTube program that he had given Tachibana an audio recording of a closed-door session of the special committee. The committee is compiling a report on the outcome of its probes into Saito, with the aim of releasing it in early March.

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