LDP group opposed to proposed tax on new postal service corp
A group of ruling Liberal Democratic Party (LDP) lawmakers concerned with postal issues decided Tuesday it will oppose the possible taxation of a new public corporation slated to take over the state-run postal services, LDP officials said.
The group will shortly begin discussing the matter with Finance Minister Masajuro Shiokawa and Toranosuke Katayama, minister of public management, home affairs, posts and telecommunications, said the officials of LDP’s division on that matter.
Last Thursday, Shiokawa said he and Katayama had agreed to tax the proposed corporation, just as the government taxes other private firms, and to require that it pay premiums for its postal deposits for governmental deposit guarantees.
Katayama also said last weekend that the government plans to submit bills related to the proposed public corporation to the Diet by the end of this month, as per Prime Minister Junichiro Koizumi’s instructions.
The LDP officials said, however, they do not believe deliberations over the bills, including on the point concerning taxation, will be concluded within April.
The officials said some group members also questioned the necessity of the premium payment, arguing that the corporation’s deposits would not be at risk as it will not offer loans as private-sector financiers do.
The public corporation is slated to be established next year to take over the current state-run mail and postal savings services.
