On Nov. 18 the Japan Federation of Economic Organizations (Nippon Keidanren) issued a statement opposing a proposed environment tax. Keidanren noted that it had set its own fiscal 2010 targets for reducing carbon-dioxide emissions generated by the industrial and energy-conversion sectors below 1990 levels, and was pushing a voluntary program to achieve the goal.

Keidanren said the tax proposed by the environment ministry had five problems. Let me comment on the alleged problems point by point:

First, Keidanren said, the tax would dampen economic recovery and stifle industrial activities.