Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Tuesday, February 1, 2022, 8:47 am to 8:51 am)

[Opening remarks:]

Today, the draft of the Act Partially Amending the Insurance Business Act was approved at the Cabinet meeting. The Act is for extending the deadline by five years for the government aid to the Life Insurance Policyholders Protection Corporation of Japan, which is to expire at the end of this March, with the aim of continuously protecting insurance policyholders appropriately in light of the changes in economic and social circumstances surrounding the insurance industry. We would like the Diet to deliberate this draft earlier.

[Questions and answers:]

Q.

The Diet is now earnestly holding discussions, but there is criticism from investors on the government's economic policies, such as the review of the financial income tax and the quarterly disclosure system and regulations on share buybacks, and even a decline in Japanese stock prices caused by a tightening in monetary policy in the United States is ridiculed as the "Kishida Shock." How do you think these opinions of investors, and are you discussing such concern of the market with the Prime Minister? In particular, regarding the review of the financial income tax, some point out that if achieving the fairness and the correction of the gap between the rich and the poor is the premise of the review, it should at least be clearly ensured that the review would not lead to tax increases for the public and would not be used as a means for the tax revenue problem. What do you think?

A.

First, regarding how I think about investors' opinions, stock prices fluctuate according to the intentions of diverse investors against the trends of domestic and foreign economies and financial markets as well as the moves of individual companies or the like. Therefore, I think it important not to swing from joy to sorrow with daily fluctuation and the supposed factors therefor.
Anyway, the FSA will carefully discuss policies for achieving a new capitalism, including the review of the quarterly disclosure system, while listening to opinions of investors, companies, and other related parties.
Regarding talks with Prime Minister Kishida, as it is about discussions within the government, I will refrain from making any comment, but I consider that it is important for the government as a whole to make efforts to implement policies for achieving the new capitalism.
Lastly, with regard to financial income tax, the Tax Reform Outline for FY2022 compiled by the ruling parties states that it is necessary to review the taxation system  from the perspective of correcting the current situation where the ratio of income tax declines for upper-income earners and of ensuring fairness in the tax burden, and that comprehensive review should be made in light of the tax systems of foreign countries and possible influences on markets, while giving due consideration not to damage an environment friendly to general investors. I think there must be various opinions, including those on the ideal system and purpose of the taxation as you mentioned. Therefore, I think that discussions will be held at the Tax Research Commission of the ruling parties and on other occasions based on opinions of the general public.