The government's Council on Economic and Fiscal Policy is scheduled to set the direction for tax reform by the end of June. Since its establishment last year, the council has set out guidelines for structural reform in fiscal, social security and other fields, but not much has been discussed about the tax system -- the cornerstone of economic policy.
Therefore, expectations are high the panel will compile plans for a fundamental reform drive that will go beyond mere technicalities and pursue the grand objective of pulling the Japanese economy out of its prolonged slump.
Traditionally, it has often been said that a tax system must be fair, neutral and simple. However, I must point out that Japan's tax system has been biased in favor of the principle of "fairness."