The appointment of Masaaki Honma as head of the Tax Commission is widely viewed as yet another setback for the Finance Ministry, which is struggling to promote fiscal consolidation under a progrowth administration led by Prime Minister Shinzo Abe.
The Finance Ministry, often viewed as the most powerful ministry because of its control over the state budget, is now watching its influence on the tax reform debate decline.
Honma is in favor of lowering corporate taxes to revitalize business but is reluctant to raise the consumption tax.