It is a right decision. The government is going to start discussion on the law revision in March 2008 when tentative gasoline tax rate comes out of force. It takes time for national consensus building on key issues such as use of road-related tax revenues. Accountability should not be neglected in the process.
It is good to see the removal of the limit on depreciation of corporate fixed assets is taking shape. It is the global trend and we live in there. The effective corporate tax rate should be lowered to enhance the international competitiveness of Japanese companies on an equal footing with foreign competitors.
The negotiations toward conclusion of the Japan-Australia EPA should be continued with patience. Necessary reform for making the Japanese agriculture tougher should be implemented in the process.
Each one of the Japanese companies should decide how much it pays the employees thinking about how to survive global competition. The days of pay raise across the board unrelated to productivity and sales performance are gone.