Osaka may follow Tokyo's move to raise funds by taxing banks more. Liberal Democratic Party members of the Osaka Prefectural Assembly will call for Osaka Gov. Fusae Ota to introduce a tax system to be imposed on large banks in the prefecture following a similar move in Tokyo, it was learned Wednesday. The Tokyo proposal, which was submitted to the metropolitan assembly Wednesday, would impose a tax of up to 3 percent on the gross profits of large banks in the metropolis. Tokyo Gov. Shintaro Ishihara's sudden announcement of the plan last week has drawn opposition from the central government and financial institutions. In Osaka, the LDP members, who make up about 40 percent of the 112-member assembly, will urge Ota to introduce the new tax during the ordinary assembly session, which opens in early March, according to sources. They are also considering submitting the tax system proposal by themselves if the prefecture opposes the proposal. Ota, who was elected governor early this month, has applauded Tokyo's move, saying it provoked debate about the independence of local governments. But she has yet to express her opinion clearly over whether Osaka will follow suit. Chief Cabinet Secretary Mikio Aoki said at a press conference Wednesday that the government will consider its stance on the recent moves in Osaka after observing further developments. "We will watch how the new governor handles the issue," Aoki told reporters. Although it cannot legally stop the Tokyo Metropolitan Government from introducing the tax, the central government has argued that the plan may be at odds with national policy. Upon instruction from the government, Home Affairs Ministry officials held talks with the metropolitan government officials Tuesday. Nothing has come of the discussions, Aoki said.
