NAKASONE DEFENDS SALES TAX AS CAMPAIGNING BEGINS
Prime Minister Yasuhiro Nakasone defended
his tax reform plans from fierce opposition, even within his
own party, as campaigning for local elections began.
    "Our plan to reform the nation's tax system is by no means
wrong. Unless we reform the system now, Japan is bound to
decay, perhaps within the next 10 years," Nakasone told
supporters of his ruling Liberal Democratic Party (LDP).
    The April 12 and 26 elections will be the first nationwide
vote since the LDP's general election victory last July.
    Opposition parties have shown rare unity in joining to
fight a proposed five pct sales tax, one of the main planks in
the tax reform package, and are now challenging the
LDP-dominated local governments and assemblies.
    In Tokyo, incumbent Governor Shunichi Suzuki backed by the
LDP and two centrist parties has said he cannot support the
sales tax as it stands.
    A survey by the National Broadcasting Corporation just over
three weeks ago showed 70 pct of those polled said they would
take the tax, which Nakasone proposes to implement next
January, into consideration when they vote.
    Takako Doi, Chairwoman of the Japan Socialist Party, said
in a speech in central Tokyo where shop-owners are opposing the
tax "The elections are a plebiscite against the sales tax. Your
vote is a vote to force (Nakasone) to retract (it)."
    The LDP is putting up its own candidates only in Iwate and
western Shimane but it is supporting independents jointly with
other parties in other prefectures.
    A close aide to Nakasone, who asked not to be identified,
said he sees the sales tax having little impact on the local
elections since almost all candidates, irrespective of party
affiliation, are opposing it in prefectural assembly polls.
 REUTER
