Tokyo Gov. Shintaro Ishihara's plan to levy a 3 percent tax on the gross profits of large banks operating in Tokyo is expected to be passed by an overwhelming majority in the metropolitan assembly later this month. New Komeito's representatives in the Tokyo Metropolitan Assembly decided on Monday to back the plan, while the Liberal Democratic Party, the largest group in the assembly, also began discussions on supporting any new ordinance, sources said Monday. The opposition Japanese Communist Party and the Democratic Party of Japan are expected to follow suit, they said. The support of major parties means the proposal will be presented to the assembly without changes. The assembly is scheduled to begin sessions Feb. 23 and vote on the proposal on March 30. Ishihara's proposal calls for slapping a 3 percent tax on the gross business profits of about 30 major banks operating in Tokyo that have capital of more than 5 trillion yen. The proposed tax, which would initially be in place for five years, would put about 110 billion yen in sorely needed revenue into the metropolitan government's empty coffers. The plan has attracted criticism from central government and banking industry officials since it was first floated by Ishihara last week. New Komeito and the LDP have supported the governor's proposals since he took office last year, but they were slow to back him this time when they found the plan had been less than favorably received by the central government, the sources said. Assembly members will find it difficult to oppose the proposal before next year's assembly election because the plan seems to have been well received by voters, they said.
