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3 Closing Remarks

Opposing the nation’s irrational measures concerning local corporate taxes

Next, I wish to speak about the central government’s irrational measures concerning the local corporate enterprise tax.

In order to achieve true local autonomy, I need not say how indispensable it is for local governments to manage their administrative affairs and finances based on their own authority and fiscal resources. We will continue to strongly urge the central government to make efforts to increase local tax revenue sources as a whole by improving and strengthening local taxes, which is essentially the reasonable method to take.

Tokyo is the locomotive for the growth of Japan as a whole. Taking away its sources of revenue, which serve as fuel driving the locomotive, through irrational financial measures taken in the name of correcting uneven distribution, works against the nation as a whole. The interim measure for corporate enterprise tax and the turning of a portion of the corporate inhabitant tax into a national tax should be withdrawn immediately and these must be restored as local taxes. In addition, in relation to the lowering of the effective corporate tax rate, there are those demanding that the setting of higher rates than the standard rate be abolished for both types of corporate taxes. But this system of high tax rates is based on local government tax autonomy, which is protected under the constitution, and is indispensable for provision of government services in line with the local situation.

We will continue to work with the municipalities of Tokyo and other local governments that share this aim to oppose the national government. The further support of the honorable members of this Assembly will be greatly appreciated.

For the development of Japan as a whole

As competition among cities in the international community intensifies, there will be no hope for the future growth of Japan if we take the introverted view of Tokyo versus the other parts of Japan. Shigeru Ishiba, who is also the minister of state for vitalizing local economy, and I also agreed that Tokyo and the other local areas of Japan must both be vitalized. In order to put our country on the growth trajectory, we must leverage the 2020 Games to link the attractions of the local areas with the wealth and knowledge drawn to Tokyo and generate synergistic effects.
As I mentioned, with the support of all the governors of Japan, we were able to establish a structure to make the 2020 Games a success. We will also propel forward the Tokyo Global Financial Center concept and the National Strategic Special Zone program, which capitalize on Tokyo’s wealth of companies and talent. We must also make the 2020 Games an opportunity for many foreign visitors to see not just Tokyo, but to travel to other parts of Japan. I am sure that the comprehensive implementation of initiatives taken together by Tokyo and the other local governments, and policies aiming to make Tokyo the world’s best city, will lead to the development of Japan as a whole.

The 2020 Games provide the last chance for Japan to rise again. As the governor of Tokyo, the capital of Japan, and as the leader of the host city, I shall carry out my mission of cleaving a bright future for Japan. I sincerely request your understanding and cooperation.

Including the matters to which I have already referred, a total of 34 proposals have been presented to this regular session of the Tokyo Metropolitan Assembly, including one budget bill and 22 proposed ordinances, to be deliberated among the Assembly members.

This concludes my policy address to the Assembly. Thank you.