October 7, 2015

JAMA Comment on New Abe Cabinet
Fumihiko Ike, Chairman, Japan Automobile Manufacturers Association, Inc.

JAMA welcomes today's announcement of Prime Minister Shinzo Abe's third Cabinet reshuffle. We have high hopes that this revamped team will act to reinforce the momentum of Japan's current positive economic growth cycle, in support of Prime Minister Abe's strong will and leadership in placing the highest priority on the economy through steady implementation of the second stage of his “Abenomics” policy vision.

Japan's new vehicle market is facing harsh conditions, having been adversely impacted by both the hike in the national consumption tax in April 2014 and the increase in the mini-vehicle tax in April this year.

Against that backdrop, and in order to fuel the emerging positive economic growth cycle, measures geared to promote vehicle demand are critically needed. Accordingly, JAMA strongly advocates the simplification of Japan's complex and excessive automobile-related taxes and an easing of the burdens they impose.

Likewise, to revitalize domestic industry and strengthen Japan's international competitiveness, we look forward to continued reform of the corporate tax regime as well as more tax measures to promote research and development.

Finally, in the wake of the agreement reached early this week on the Trans-Pacific Partnership trade pact, JAMA also calls for accelerating the pace of talks to achieve early accord on the EU-Japan Economic Partnership Agreement, the Asia-based Regional Comprehensive Economic Partnership (RCEP), and other key economic treaties currently under negotiation.