Petition (Addressed to the Speaker of the House of Representatives)
May 21, 2025
To the Speaker of the House of Representatives
[Petition] Request for Commencement of Legislative Deliberations on Tax Reform Proposals and Draft Bills
Dear Sir,
I would like to extend my deep respect for your tireless efforts in the daily administration of national affairs.
As one of the sovereign people, I hereby express serious concerns regarding the current tax system—particularly the consumption tax system and the legal basis of fiscal management—and formally submit this petition as follows:
[Petition Requests]
- In discussions on the current consumption tax system, please take realistic measures in light of the constraints of the Tax Law and the Fiscal Law.
- Redesign the current tax system fundamentally, and promptly shift to a structure that enables effective fiscal management.
- Based on the tax reform proposal already prepared for submission, commence formal legislative deliberations in the National Diet.
[Summary of Petition]
This is not a mere request, but a formal petition based on a concrete legal proposal.
With regard to the actual use of consumption tax revenue and its relation to government bond redemption, the current system is seriously inconsistent with both the Constitution and the Fiscal Law. The necessity of rectification is evident.
As a sovereign citizen, I have prepared a proposal that independently redesigns the entire system.
This action is not limited to exercising the right of petition under Article 16 of the Constitution; it is also a demand for concrete legislative action addressed to your House, the “supreme organ of state power” under Article 41 of the Constitution.
Any shelving, neglect, or dismissal as outside jurisdiction would constitute a denial of the constitutional rights guaranteed to the people, and will by no means be tolerated.
Respectfully,
Petitioner: Jun Takeshita (Name or Organization)
Contact: As published in the House of Representatives Bulletin No. 97 of the 217th Diet, issued June 16
Attachment: Proposal (Printed Document)
Draft Request Letter Regarding Submission of WORD Files (Supplement)
[Request]
Ensuring a means of electronic submission in WORD format
At present, petitions and requests tend to be handled in a perfunctory manner due to their submission in paper format. However, when the contents of a bill proposal are complex and technical, the necessity of submission by electronic file (particularly in Word format) is extremely high.
Therefore, I hereby submit the following request for consideration regarding the establishment of an electronic submission channel:
[Requested Measures]
- Establish within the Secretariat of the House of Representatives a dedicated electronic submission channel (a kind of suggestion box) for the general public to submit bills and proposals in electronic file formats such as Word.
- Create a mechanism that allows multiple proposals to be submitted, referred to, and managed continuously on a monthly basis.
- Ensure that submitted documents are treated as official records and are properly shared with the Speaker and relevant committees.
I am convinced that the establishment of such an electronic submission system is indispensable for promoting citizen participation in policymaking and realizing popular sovereignty under the Constitution.
I respectfully request your positive response.
Policy Proposal
Policy Proposal on True Consumption Tax Reform
1. Purpose of the Proposal
This proposal aims to correct the current situation in which the existing consumption tax system has deviated from its original理念, causing serious impacts on citizens’ lives, social security, and the credibility of the tax system. The objective is to return to the origins of taxation and reconstruct it as a “tax to support living.”
Specifically, consumption tax shall not be treated merely as a general revenue source, but shall be legally and institutionally defined as a “social security purpose tax,” with strict restrictions on its use. At the same time, the tax structure will be redesigned into zero-rate, reduced-rate, and standard-rate tiers to ensure fairness and sustainability.
Through simplification and transparency, this proposal seeks to eliminate the invoice system, reduce the burdens on small and medium-sized businesses, align with international frameworks (tariff systems, OECD tax principles), and establish a true tax system that earns public trust.
2. Background and Current Recognition
Consumption tax was introduced in 1989 by the Takeshita Cabinet as a “tax for welfare.” However, in practice, revenues were used in areas beyond social security, treated institutionally as general revenue. Furthermore, its regressive nature has disproportionately burdened low-income households, especially those in poverty.
Operationally, the complexity of the reduced tax rate system and the heavy burdens imposed by the invoice system (fully implemented in 2023) on SMEs have highlighted structural issues. These cannot be solved by minor operational improvements; fundamental redesign is required.
At the same time, securing sustainability for social security remains urgent. A stable revenue source is indispensable. Hence, a fundamental review of the consumption tax system is needed to restore public trust and create a functional tax regime.
3. Identification of Issues
The main problems of the current consumption tax system and related frameworks are:
(1) Regressivity
Overburdening low-income households and undermining fairness.
(2) Lack of transparency in usage
The original purpose of “for social security” has been hollowed out, with revenues diverted to general funds.
(3) Complexity
Reduced tax rates are ambiguous, and the invoice system creates excessive burdens for SMEs.
(4) Lack of systemic/legal consistency
Misalignment with fiscal law, social security law, constitution, etc., undermining legal stability.
(5) Lack of international consistency
Insufficient alignment with tariff systems and OECD international taxation principles.
4. Basic Policy of Reform
This reform will redesign the consumption tax system both institutionally and ethically, based on:
(1) Repositioning as a social security purpose tax
Legally restrict revenues solely to social security.
(2) Relief for essential goods
Zero or reduced rates for necessities, easing regressivity.
(3) Simplification and SME support
Eliminate the invoice system, apply item-based taxation.
(4) Legal/systemic consistency
Harmonize with constitution, fiscal law, civil law, corporate law, etc.
(5) International consistency and accountability
Align with OECD, WTO, FTA/EPA frameworks.
5. Outline of System Design
(1) Redesign of Tax Structure: Item-Based Tiered Rates
- Zero rate (0%): staple foods, medicines, public education, welfare/care services
- Reduced rate (5%): processed foods, hygiene products, utilities, private education
- Standard rate (10–15%): dining out, alcohol/tobacco, leisure, luxury goods
(2) Designated Use of Revenues
- Legally restricted to 3 areas: pensions, health/long-term care insurance, child/welfare support
- Mandatory Diet reports & web disclosure
(3) Abolition of Invoice System
- Item-based tax rates replace invoice complexity
- Major burden reduction for SMEs
(4) International Consistency
- Linked with HS codes, compatible with OECD/BEPS rules
(5) Legal Foundation Strengthening
- Constitutional reform: Art.25 & new Art.84-2 for social security tax
- Fiscal law reform: limit deficit bonds, prioritize earmarked taxes
- Civil law reform: align public assistance with welfare benefits
(6) Income & Corporate Tax Reform
- Progressive tax redesign, unified taxation incl. capital income
- New top rate (e.g. 50% for ultra-high incomes)
- Corporate: minimum tax, internal reserve taxation, overhaul of exemptions
(7) Export Refund & Tariff Policy Alignment
- Restrict excessive VAT refunds on exports, impose caps
- Integrated with customs policies
(8) Fiscal Defense via Transparency
- Introduce “purpose tax ledger” with annual disclosure
- Serves as fiscal sovereignty safeguard and defense
6. Expected Outcomes
- Fairness restored: easing regressivity, institutional fairness
- Strengthened trust in social security: revenues exclusively for welfare
- Reduced SME burden: simplified system, no invoices
- Legal stability: harmonized six major laws
- International alignment: easy policy explanation abroad
7. Implementation Process Plan
To implement this proposal as a legal system, phased legislation, publicity, and execution are necessary. The outline is as follows:
[Step 1] Finalization of system design and drafting of the bill (Year 1)
- Refinement of the policy proposal and finalization of the bill text
- Coordination with related laws such as the Income Tax Act and Corporate Tax Act
- Drafting for Diet submission and preparation of parliamentary sponsorship
[Step 2] Submission, deliberation, and enactment in the Diet (Year 2)
- Consultations with political parties, legislators, bureaucrats, and experts
- Holding public hearings and inviting comments
- Submission of the bill, Diet deliberations, and handling of supplementary resolutions
[Step 3] Publicity and preparation period (Year 3)
- Publication of details of the new system and preparation of manuals
- Explanations to businesses, local governments, and relevant institutions
- Examination of transitional measures and publicity period (approx. 6–12 months)
[Step 4] Enforcement and monitoring (Year 4 onward)
- Enforcement of the law alongside establishment of monitoring systems
- Annual reporting on usage and evaluation, with institutional improvements as necessary
8. List of Related Materials (Appendix)
The following materials related to this proposal are organized and stored in the GitHub repository:
🔹 Individual Draft Bills
🔹 Proposals & Summaries (Phase 1)
🔹 Bill-related Documents (Phase 2)
🔹 Social Consensus-building Materials (Phase 3)
🔹 International Response Materials (Phase 4)
🔹 Shared Materials
※ All materials are stored in Markdown format, convertible to PDF, printable for submission, and translatable as needed.
Consumption Tax Reform – Policy Summary
🧾 Summary of the "True Consumption Tax Reform" Policy Proposal
🎯 Objective of the Proposal
To fundamentally reform the existing consumption tax system—addressing its regressive nature, lack of transparency, and structural complexity—by redesigning it as a "Tax for Social Security Purposes".
🔧 Key Reform Points
Legal Restriction of Tax Use to Social Security
- Tax revenue strictly allocated to pensions, healthcare, and child support
- Annual reports to the National Diet and public disclosure of usage
Redesign of Tax Structure (Item-based, Tiered Rates)
- Zero Rate: Essential food, medical supplies, public education
- Reduced Rate: Processed foods, rent, electricity/gas, hygiene items
- Standard Rate: Dining out, luxury goods, alcohol, entertainment
Abolition of the Invoice System
- Shift to item-based taxation removes the need for invoice validation
- Significantly reduces administrative burdens for SMEs
Balance of International Consistency and Simplicity
- Aligned with HS code (customs classification system)
- Compatible with OECD standards, including BEPS 2.0
✅ Expected Effects
- Alleviation of regressive tax burden on low-income groups
- Restored trust in social security funding
- Practical support for SMEs and revitalization of the economy
- Legal consistency and enhanced international accountability
📈 Next Steps
- Legislative drafting of bills (Consumption Tax Act, Fiscal Law, etc.)
- Policy alignment with experts, lawmakers, and relevant stakeholders
- Preparations for Diet submission and nationwide public explanation
For details, see Policy Proposal.
Consumption Tax Reform Bill
📜 The True Consumption Tax Reform Act (Act No. XX of Reiwa XX [2025])
Chapter 1: General Provisions
Article 1 (Purpose)
The purpose of this Act is to secure a sustainable and fair financial foundation for the social security system through consumption-based taxation, thereby promoting stability in the lives of the people and sound economic development.
Article 2 (Definition)
In this Act, “social security” refers to public pension systems, medical insurance, long-term care insurance, child allowance, and childbirth/childcare support programs.
Chapter 2: Taxable Transactions and Rates
Article 3 (Scope of Taxation)
This tax shall apply to the transfer of assets, provision of services, and import transactions conducted within Japan, excluding non-taxable and zero-rated items.
Article 4 (Rate Categories)
| Tax Rate |
Examples of Applicable Items |
| 0% (Zero Rate) |
Rice, vegetables, dairy products, prescription medicines, public education, welfare and caregiving |
| 5% (Reduced Rate) |
Processed foods, hygiene products, rent, electricity, gas, private education |
| 10–15% (Standard Rate) |
Dining out, alcohol, tobacco, entertainment, luxury goods and services |
The classification of taxable items shall conform to the HS code and be specified by Cabinet Order.
Chapter 3: Tax Liability and Method
Article 5 (Taxpayer)
Businesses engaging in taxable transactions shall, in principle, be liable for tax payment. However, small-scale businesses eligible for the simplified taxation scheme shall be defined by Cabinet Order.
Article 6 (Exclusion of Invoice System)
Under this Act, tax assessment is based on the nature of goods and services, not on issuer registration. Therefore, business registration numbers and qualified invoice issuance shall not be required.
Chapter 4: Use of Tax Revenue and Reporting Obligations
Article 7 (Restricted Use of Tax Revenue)
Revenue from consumption tax under this Act shall be used exclusively for the following social security purposes:
- Funding of public pension benefits
- Funding of the medical and long-term care insurance systems
- Funding of child allowance and childbirth/childcare support systems
Article 8 (Reporting and Disclosure)
The government shall report the usage of the aforementioned tax revenue to the National Diet after the end of each fiscal year and publish the details to the public via the internet.
Article 9 (Disclosure of Purpose-specific Fund Balances and Sovereign Fiscal Defense)
The government shall prepare and maintain a “Purpose Tax Ledger” detailing the annual accumulation, expenditures, and balances of social security purpose taxes.
This ledger must be submitted to the National Diet and continuously disclosed to the public via the internet.
This disclosure serves to fulfill accountability to the public, ensure fiscal transparency, and protect the sovereign administration of social security funding from external interference.
The structure, contents, update frequency, and other necessary details of the ledger shall be defined by Cabinet Order.
Chapter 5: Supplementary Provisions
- This Act shall come into effect on a date to be specified by Cabinet Order.
- Transitional measures necessary for implementation shall be stipulated by Cabinet Order.
- The government shall promptly amend related laws and regulations as necessary upon this Act’s implementation.
- Regarding tax refunds for export transactions, the following measures shall be taken:
(1) Refunds shall be limited to exports of final products.
(2) An annual cap on refund amounts shall be established.
(3) Further detailed criteria shall be defined by Cabinet Order.
Legislative Preamble
True Consumption Tax Reform Bill – Legislative Purpose Statement
1. Introduction
This bill seeks to fundamentally correct the serious institutional and social issues embedded in the current consumption tax system, which has strayed far from its original purpose.
Originally introduced as a "tax for welfare," the consumption tax has, over time, become increasingly regressive, complex, and worn out, undermining public trust and placing a growing burden on households and the economy. Now is the time to return to its founding principles and reconstruct the system based on the idea that “taxation exists to support society.”
2. Philosophy of Reform
Clarifying in law that taxes exist for welfare
→ Redefine the consumption tax as a social security-purpose tax
Ensuring tax burdens are fair and proportionate to ability to pay
→ Correct regressiveness through item-based and progressive tax rates
Creating a tax system that is understandable, simple, and accountable to the public
→ Abolish the invoice system and disclose the use of tax revenues transparently
Aligning the tax system with domestic and international legal frameworks
→ Ensure consistency with the Six Codes, customs law, and international tax principles
3. Basic Structure of the Bill
The bill aims to redesign the consumption tax system through the following structure:
- General Provisions: Objectives and definitions
- Taxation Structure: Introduction of item-based taxation with zero, reduced, and standard rates
- Use of Tax Revenue: Restrict the use of consumption tax revenue to pensions, healthcare, and welfare
- Simplification Measures: Exempt the invoice system from application
- Transparency: Mandate reporting and public disclosure of tax revenue use
- Supplementary Provisions: Effective date and provisions for related legal revisions
4. Vision of the Bill
This bill is not merely about adjusting tax rates or making administrative improvements.
It is a complete redesign of the philosophy and practice of national finance—a rethinking of how society is supported through taxation.
Our aim is to create a system in which:
- Citizens can pay taxes with confidence, and
- People can genuinely feel that their taxes are tangibly supporting others.
This bill aspires to realize the “true consumption tax.”
Through its philosophy, structure, and implementation,
we hereby declare it to be a foundation for sustainable solidarity in society.
Structural Comparison with Old Law
True Consumption Tax Reform Bill: Structural Comparison with Existing Law
This document outlines a comparative analysis between the current Consumption Tax Act (Act No. 108 of 1988) and the proposed True Consumption Tax Reform Bill, focusing on institutional design, legislative structure, and philosophical distinctions.
1. Structural Comparison of Legal Frameworks (Existing Law vs. Reform Bill)
| Item |
Existing Consumption Tax Act |
True Consumption Tax Reform Bill |
| Purpose of the System |
General revenue (nominally for social security) |
Social security-purpose tax (use legally restricted) |
| Tax Base |
Goods and services (broadly defined) |
Categorized by item (three-tiered rate system) |
| Tax Rate Structure |
Uniform rates (standard 10%, reduced 8%) |
Zero, reduced, and standard rates (0%, 5%, 10–15%) |
| Basis for Rate Determination |
Uniform across product types |
Based on social necessity and ability to pay |
| Invoice System |
Mandatory (business registration required) |
Abolished (rate determined by item classification) |
| Anti-Regressivity Measures |
Minimal (limited reduced rate) |
Institutionalized zero rate for essential goods |
| Use of Revenue |
Allocated to general budget (opaque usage) |
Exclusively for pensions, healthcare, and welfare |
| Consistency with Legal System |
No explicit linkage with Constitution or fiscal laws |
Designed in alignment with Japan's Six Codes |
| International Compatibility |
Separated from customs codes and OECD standards |
Alignable with HS codes and BEPS-compliant design |
2. Article-Level Correspondence Examples
| Article |
Existing Law |
After Amendment (Reform Bill) |
| Article 1 (Purpose) |
Taxation on general consumption |
Explicitly defined as a social security-purpose tax |
| Article 6 (Tax Rate) |
Standard rate 10%, reduced rate 8% |
Three-tiered system: zero / reduced / standard |
| Article 30+ (Deductions) |
Invoice-based deduction system |
Deductions largely abolished; simplified input tax calculation |
| Supplementary Provisions |
Invoice introduction & transitional measures |
Invoice abolition, effective date, and revision of related laws |
3. Summary
This bill is not a partial revision but a comprehensive overhaul of the current consumption tax system, addressing its philosophical, legal, and social deficiencies.
It redefines consumption tax not as a tool for fiscal revenue, but as a mechanism of social justice. As such, the relationship between the current and proposed systems is not that of amendment, but of fundamental replacement.
This bill represents a genuine and legitimate reconstruction
— in principle, in legal coherence, and in societal acceptance.
That is the essence of the True Consumption Tax Reform Bill.
FAQ
📜 Comprehensive Legislative Amendment for Establishing the Social Security-Purpose Tax System
1. Purpose of the Amendment
This bill aims to rectify the legal and institutional inconsistencies within the current taxation and social security systems, establishing a sustainable and equitable national fiscal structure
Specifically, it seeks to explicitly designate taxes, including the consumption tax, as financial resources for social security, legally restricting and enabling monitoring of their use to ensure the legitimacy of taxation and public acceptance
2. List of Laws to be Amended
-The Constitution of Japa
-Public Finance Act (Act No. 34 of 1947
-Civil Code (Act No. 89 of 1896
3. Details of the Amendments
Section 1: Partial Amendment to the Constitution of Japan
(1) Addition of Paragraph 3 to Article 25
- The State shall cover the expenses necessary for implementing social security as prescribed in the preceding paragraph through taxation, and certain taxes shall be used exclusively for social security purposes as provided by law
(2) New Article 84-2
The Diet may, by law, establish specific taxes as social security-purpose taxes to cover expenses required for the social security system
The revenue from social security-purpose taxes shall not be diverted to other purposes
The Government shall report annually to the Diet and the public on the use and execution status of such taxes
(3) Addition of Proviso to Article 89
However, this shall not apply when expenditures are made in accordance with systems established by law based on social security-purpose taxes
Section 2: Partial Amendment to the Public Finance Act
(1) Addition of Paragraph 2 to Article 4
The State shall prioritize the use of social security-purpose taxes over general revenues and shall permit the issuance of deficit-financing bonds only when such taxes are insufficient
(2) Amendment to Article 6
The Government shall submit to the Diet, for each fiscal year, a budget proposal specifying the use and allocation of social security-purpose taxes
Section 3: Partial Amendment to the Civil Code
(1) Addition of Proviso to Article 877
However, this shall not apply when the obligor is deemed appropriate to receive public assistance or when it is reasonable to substitute support through public systems
4. Supplementary Provisions
1.This Act shall come into effect within ◯ years from the date of promulgation
2.Transitional measures and matters delegated to government ordinances related to the enforcement of the amended laws shall be separately stipulated
3.The Government shall promptly make necessary arrangements for related laws required by the enforcement of this Act
Legal Issue Matrix
📊 Bill Response Status Matrix (Latest as of April 2025)
| Issue No. |
Issue Description |
Status in Bill |
Notes |
| A-1 |
Regressivity of consumption tax |
✅ Addressed |
Consumption Tax Reform Bill: Mitigated by zero/reduced tax rates |
| A-2 |
Lack of transparency in use of consumption tax revenue |
✅ Addressed |
Consumption Tax Reform Bill: Defined as social security purpose tax + mandatory reporting of usage |
| A-3 |
Complexity of the system (reduced tax rate, invoice) |
✅ Addressed |
Consumption Tax Reform Bill: Abolition of invoice system, shift to item-based taxation |
| B-4 |
Weakening of progressive income tax |
✅ Addressed |
Income Tax Reform Bill: Revised tax rates, comprehensive taxation of financial income |
| B-5 |
Separation of financial and asset taxation |
✅ Addressed |
Income Tax Reform Bill: Mandatory overseas asset reporting, supplementary asset taxation |
| B-6 |
Decline in effective corporate tax burden |
✅ Addressed |
Corporate Tax Reform Bill: Minimum tax rate, plan for retained earnings taxation |
| B-7 |
Tax burden disparity with SMEs |
✅ Addressed |
Consumption Tax Reform Bill: Corrected through abolition of invoice system |
| C-8 |
Unclear constitutional positioning of taxation |
✅ Addressed |
Comprehensive Legislative Reform Bill: Proposal to add new Articles 25 & 84-2 to Constitution |
| C-9 |
Consistency between family support obligations and public systems |
✅ Addressed |
Comprehensive Legislative Reform Bill: Proposal to add proviso to Civil Code Article 877 |
| C-10 |
Unclear corporate tax responsibility of large companies |
🛠 Concept Declared |
Corporate Law reform concept proposed, future bill planned |
| C-11 |
Consistency with Fiscal Law |
✅ Addressed |
Comprehensive Legislative Reform Bill: Proposal to amend Fiscal Law Articles 4 & 6 |
| C-12 |
Transparency in tax administration |
✅ Addressed |
Consumption Tax Reform Bill: Mandatory reporting of usage, publication on web |
| D-13 |
Consistency with customs system |
✅ Addressed |
Consumption Tax Reform Bill: Designed based on HS code alignment |
| D-14 |
Compliance with international tax standards (BEPS) |
🛠 Concept Declared |
corporate_tax_reform.md: Future introduction of BEPS 2.0 provisions planned |
| D-15 |
Review of export refund system and consistency with customs policy |
✅ Addressed |
Consumption Tax Reform Bill: Refund restriction provisions stipulated in supplementary rules |
🟢 Addressed: 12 items (A-1–A-3, B-4–B-7, C-8, C-9, C-11, C-12, D-13)
🛠 Concept Declared: 2 items (C-10, D-14)
🔴 Not Addressed: 0 items (as of now)
