Ministry of Finance considers about "local consumption tax" of about 5 trillion yen to be allocated to prefectures out of consumption tax, The distribution has been biased, and we have indicated the policy to review it. It is my intention to revise the mechanism so that allocation to the region will increase in the discussion of the tax system revision at the end of the year.
This was announced by the Ministry of Finance at the "Financial System Council" held by the Finance Minister on January 31. According to it, consumption tax is "local consumption tax" about 1 / 5th of tax revenue, about 5 trillion yen is allocated to prefectures.
How much is allocated to each prefecture is determined by the amount actually consumed in retail stores etc. in each place.
However, people living in rural areas often go shopping in big cities, so it is pointed out that tax revenues are biased toward large cities such as Tokyo.
Actually, looking at local consumption tax allocated per population, the largest number of Tokyo has 1.6 times more distribution than Okinawa.
The Treasury needs to revise its mechanism to allocate more local distributions to local governments as tax revenues of regional consumption taxes are the main source of social security expenses for elderly and child-rearing households There is that there is.
We are planning to consider plans to decide the amount according to the ratio of the young population under the age of 15 and the population of elderly people aged 65 or over in the discussion of tax system revision at the end of the year.
It is anticipated that opposition from local governments such as Tokyo and Osaka will result in a decrease in tax revenue, and adjustment may be difficult.