Press translations [Japan]. Economic Series 0161, 1946-01-14.

Summary:

For the purpose of promoting the rapid recovery of various equipment, increasing transport capacity, and improving the treatment of employees, the Government railway has decided to revise regulations on freight.

The Communications Ministry decided on the outline for revised railway freight rates after discussions at the first, Railway Freight Conference, which was held on 10 January. The decisions will be written into a concrete plan and put into practice on 1 March.

By these revisions passenger fares are to be increased to 2.5 times the present rate, and freight rates are to be increased by about three times. This increase in rates will result, in the next fiscal year, in an increase of income amounting to about 3,400,000,000 yen - 2,600,000,000 yen for passenger fares, and 800,000,000 yen for freight.

Even with this, the government railway will still suffer a 1oss. In addition, the Government will allow the raising of freight rates on private railways, taking into consideration the improvement of treatment for employees, together with the problem of recovering from war damages. The draft for the revision of railway freight rates is as follows:

• A.Passenger Fares:
• 1.Ordinary passenger fares: Wartime special rates will be increased to about 2.5 times the present rates. The minimum fare will be raised accordingly.
• 2.Passenger rates for season tickets: There will be two types of fares for season tickets, ordinary and special. The discount rates will thus be greatly simplified. At the same time, care will be taken so that this will not conflict with ordinary passenger fares.
• 3.Express fees and berth charges will also be revised in accordance with the raising of ordinary passenger fares.
• 4.Charges will be made on hand baggage.
• B.Freight Rates:
• 1.Freight rates will be increased to about three times the present rates. The minimum freight rate will also be raised accordingly.
• 2.Freight discount, a wartime measure, will be abolished.
• 3.The system of cheaper freight rates for large amounts of freight, which had been used as a wartime measure to increase transport capacities, will

•   ECONOMIC SERIES: 161 (Continued) ITEM 1 (Continued) be abolished. An adjustment of the grade tariff must be made as a result of this measure.
• 4.The charge for collection and delivery of baggage will also be raised considerably.

Full Translation:

Mr. TAKAHASHI, Nasao, former KYUSHU Imperial University professor, made public his views on the new taxes yesterday. He stated, "nothing has been left unsaid concerning the importance of the three new taxes. I do not know how many people the Finance Ministry expects to be affected by the taxes, but the numbers are likely to be very large since even very small properties will be taxable."

"It is rather difficult to expect good results because there is only a small number of tax collectors at present. Fines and penal servitude are to be used to prevent anticipated tax-dodging. This fire can be levied as high as three times the assessed tax of evaders."

"Examples in foreign countries have, proven it feasible that the properties of tax-evaders be confiscated. The Government stated that property assessment comittees (ZAISAN CHOSA IINKAI) will be established. Elected members will have charge of putting the taxes into effect."

"The question of inflation has the greatest bearing on the new taxes. If inflation is not at least checked, economy in general and consequently the assessment of property to be taxed will leave much to be desired. What is worse, it will not be possible to avoid an increased number of more misdemeanors, for inflation lowers morale."

"In brief, the important thing is not to levy tax on property, but to put into practice at any risk a well-balanced program for the reconstruction of Japanese economy."

Full Translations:

The Finance Ministry plans a 42 per cent reduction of officials at the central office and a 20 per cent reduction at the local offices as result of administrative readjustments. It is conducting a survey of actual persons to be dismissed. According to this plan the present structure of the Finance Ministry will be drastically changed throughout the central and local offices. The reform plan has already been decided and it will be put into effect by the process of the reform of Government organization, simultaneously with the enforcement of the Administrative Readjustment Law.

The present structure of the central office consists of five bureaus: The Accountant Bureau, the Revenue Bureaus, the Monetary Circulation Bureau, the External Investment Bureau, and the National Savings Bureau. Out of these five bureaus, the Monetary Circulation, the External Investment, and the National Savings Bureaus will be abolished, and in their place, the Economic and the Monetory Circulation Bureaus will be established. But the composition of the latter will be entirely different from what it was formerly. The new Monetory Circulation Bureau will be divided into a dynamic and a static section each to carry on its own activity. Among the local offici[illegible]

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ECONOMIC SERIES: 161 (Continued)

ITEM 3 (Continued)

the structure of the Minting Bureau and the Financial Bureau will be simplified. At the same time changes in personnel will be carried out in connection with administrative readjustment. In order to make a drastic renovation, seven to ten high officials of CHOKUNIN rank will be compelled to retire.

Full Translation:

Several hundred ex-employees of the FUJI Industrial Company (FUJI SANGYO), formerly the NAKAJIMA, Airplane Manufacturing Company (NAKAJIMA HIKOKI), united in joint action with 500 workers remaining at the company in a move to hold a general meeting of past and present workers on the afternoon of 11 January. The company officials, aware of these developments, suddenly called a meeting of workers on the forenoon of the same day and promised to recognize their union. As a result, the workers attending this meeting became reluctant to attend the general meeting in the afternoon. Thereupon, the ex-workers took this as an open breach of the promise by Mr. NIIYAMA, the director, not to foster any company union and the ex-workers are considering countermeasures to be taken.

Summary:

Our national economy is suffering from an abnormal unbalance between scanty materials and abundant money. The property tax will be of great service in balancing money against materials by absorbing a huge amount of funds into the national treasury. This is a necessary step for the reconstruction of national economy and stabilization of national life.

To realize the just imposition and revenue from tax, it is most essential to prevent tax evasion in the form of concealment, dispersion, or camouflage. The authorities intend to apply drastic measures against tax-evasion of this kind. For example, the amount of money on hand will be ascertained by putting a sign of "registered" on receipts of deposits or savings, bonds the receipts of bonds, etc, and by carefully inspecting for those who conceal the property in the form of purchased goods. In addition, we also intend to impose the tax upon contributed or donated property, together with other properties owned by the contributor or donor.

We are considering strict punitive measures against those who still dare to commit tax evasion. We will exert our greatest efforts for the realization of impartial taxation. For example, in order to protect a depositor, we intend to take steps by which the taxation will be made upon about 80 per cent of the deposited amount. Our national economy is now at the point of rushing into a stage of malignant inflation. At this time the property tax, I believe, is the sole remedy for breaking open the present dangerous situation. The foundations of price stability can, for the first time, be laid by this taxation.

It is not too much to say that the success or failure of the economic and financial reconstruction of our country depends upon whether the imposition of this tax will be properly realized or not. The wartime profits or properties, upon which the tax is to be imposed, are very wide-spread, and tax-payers are estimated to be numerous. Moreover, it is highly desirable for the reconstruction of our financial economy to collect the tax as rapidly as possible. Great difficulty will, of course, be encountered in estimating the wartime profits and properties. We herewith demand of you people, that you extend your wholehearted support and co-operation toward the administration of this tax.

DISTRIBUTION "X"

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