Sunday, May 23, 2010
Governor says with tax breaks prefecture can be Asia gateway
OSAKA (Kyodo) Osaka Gov. Toru Hashimoto called on the central government Sunday to designate his prefecture as a special business zone that would serve as an entry point for businesses across Asia.
The government has been considering legislating a system for special business zones, and during a meeting Sunday with Hashimoto, Senior Vice Cabinet Office Minister Motohisa Furukawa unveiled the administration's intention to submit the bill to the Diet early next year.
"Osaka will aim to become a city connecting (the rest of) Asia and Japan," Hashimoto told Furukawa, who is secretary general of the National Policy Unit.
During their meeting, the popular lawyer and former TV personality outlined a plan to attract tourists and investment from other parts of Asia via Osaka to rejuvenate the country as a whole.
He also shared his analysis that even though corporate tax within the Osaka business zone would be reduced or waived, the central government would still benefit from tax revenues in the long term.
"Please use Osaka as an experiment by letting us take responsibility," he said, adding he will ensure that the prefecture won't be the only winner if the initiative is adopted.
Furukawa noted that Japan's conventional growth strategy has involved creating miniature versions of Tokyo elsewhere in the country. But from now on, Furukawa said, it will be important to ensure that regional success stories spread across the country.
"We will consider a structure that includes taxation," said Furukawa, who is involved in formulating economic and fiscal policy at the Cabinet Office.
Speaking to reporters after the meeting, Furukawa said:
"While Osaka has moved ahead (on this issue), other regions are also making similar requests. By having them compete with each other, I want to make a breakthrough in energizing Japan."
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