Tag: Asia

The Japanese government is considering giving Japan Post special tax benefits when the public corporation is privatized in April 2007, informed sources said Friday. Specifically, the government plans to allow the deferment of payments of asset transfer tax after the privatization. It is also considering reduced registration license tax, real estate acquisition tax and stamp tax, the sources said. The special tax treatment is intended as a transitional measure to achieve a smooth privatization. Japan Post has 400 trillion yen of assets, and a huge amount of taxes would have to be paid without such a favor when the assets are formally transferred to companies to be created from the privatization.

Prime Minister Junichiro Koizumi renewed his resolve Friday to push forward with postal reform despite criticism within his Liberal Democratic Party, saying he wants to endorse a basic policy for privatizing the nation’s postal services at next Friday’s Cabinet meeting. He wants to see the blueprint adopted after the Council on Economic and Fiscal Policy finalizes it early next week, LDP lawmakers said. LDP Policy Research Council Chairman Fukushiro Nukaga met with Koizumi in the premier’s office and explained the stubborn opposition within the party. According to Nukaga, Koizumi indicated he will not stick to the adoption of the basic policy at next Friday’s Cabinet meeting and may discuss the matter with the LDP. Asked about the talks with Nukaga, however, Koizumi told reporters, “I told Mr. Nukaga, let us discuss the issue by next Friday thoroughly.”