Japan Post: Ready, steady, go
If it is done properly, the privatisation of Japan Post could boost competition in the country’s financial markets. Trouble is, it might not be.
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Japan Govt Mulling Special Tax Benefits for Japan Post
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.
Read MorePostal privatization blueprint may be adopted next Friday
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.”
Read MoreJapan’s Yamato rejects Lawson’s new offer to handle parcels
Yamato Transport Co. on Wednesday turned down a fresh proposal from Lawson Inc. to continue handling its parcel delivery services alongside rival Japan Post’s similar offering, saying the company and the government-backed entity “are not on a level playing field.” Lawson convenience stores on Nov. 1 will start serving as pickup spots for Japan Post’s low-cost parcel delivery services, and this prompted Yamato Transport, the nation’s largest home-to-home parcel delivery service operator, to cancel a contract with Lawson. Under the previous contract, Yamato was designated as the sole distributor of parcels through Lawson’s nationwide convenience store network. Lawson said Wednesday that it has proposed a new contract to Yamato without an exclusivity clause.
Read MoreLawson asks Yamato Transport to continue partnership
Convenience store chain operator Lawson Inc. said Wednesday it has asked Yamato Transport Co. to continue their partnership even after Lawson begins handling parcels for Japan Post in mid-November. Lawson said it wants to renew a business tie-up contract with Yamato, Japan’s largest door-to-door parcel delivery service company, when the current contract expires Nov. 19. Yamato last month decided to end its alliance with Lawson when the current contract expires because Lawson agreed to handle Japan Post parcels through its nationwide store chain.
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