①Where a business operator under Article 72-88, paragraph (1) of the New Act files a return under Article 72-88, paragraph (1) of the New Act for a taxable period ending on or after the application date (meaning a taxable period prescribed in Article 72-78, paragraph (3) of the New Act; the same applies hereinafter in this Article), and the amount that is the basis for calculating the amount of consumption tax prescribed in that paragraph for that taxable period includes the amount of consumption tax relating to taxable transfers, etc. of assets subject to transitional measures prescribed in paragraph (2) of the preceding Article or taxable purchases, etc. subject to transitional measures prescribed in paragraph (3) of that Article, and there is a remainder after deducting the amount set forth in item (ii) from the amount set forth in item (i), Article 72-88, paragraph (1) of the New Act is applied by treating that remainder as the amount of consumption tax prescribed in Article 72-88, paragraph (1) of the New Act for that taxable period.

②Where a business operator under Article 72-88, paragraph (1) of the New Act files a return under that paragraph for a taxable period ending on or after the application date, and the amount that is the basis for calculating the amount of consumption tax prescribed in that paragraph for that taxable period includes the amount of consumption tax relating to taxable transfers, etc. of assets subject to transitional measures prescribed in paragraph (2) of the preceding Article or taxable purchases, etc. subject to transitional measures prescribed in paragraph (3) of that Article, and there is an amount that could not be fully deducted when the amount set forth in item (ii) of the preceding paragraph is deducted from the amount set forth in item (i) of that paragraph, Article 72-88, paragraph (2) of the New Act is applied by deeming that business operator to be a business operator prescribed in Article 72-88, paragraph (2) of the New Act and the amount that could not be fully deducted to be the shortfall prescribed in that paragraph.

③Where a business operator under Article 72-88, paragraph (2) of the New Act (limited to a person obliged to submit a return relating to consumption tax pursuant to Article 45, paragraph (1) of the Consumption Tax Act) files a return under Article 72-88, paragraph (2) of the New Act for a taxable period ending on or after the application date, and the amount that is the basis for calculating the shortfall prescribed in that paragraph for that taxable period includes the amount of consumption tax relating to taxable transfers, etc. of assets subject to transitional measures prescribed in paragraph (2) of the preceding Article or taxable purchases, etc. subject to transitional measures prescribed in paragraph (3) of that Article, and there is an amount that could not be fully deducted when the amount set forth in paragraph (1), item (ii) is deducted from the amount set forth in paragraph (1), item (i), Article 72-88, paragraph (2) of the New Act is applied by treating the amount that could not be fully deducted as the shortfall prescribed in Article 72-88, paragraph (2) of the New Act for that taxable period.

④Where a business operator under Article 72-88, paragraph (2) of the New Act (limited to a person obliged to submit a return relating to consumption tax pursuant to Article 45, paragraph (1) of the Consumption Tax Act) files a return under Article 45, paragraph (1) of the Consumption Tax Act for a taxable period ending on or after the application date, and the amount that is the basis for calculating the shortfall prescribed in that paragraph for that taxable period includes the amount of consumption tax relating to taxable transfers, etc. of assets subject to transitional measures prescribed in paragraph (2) of the preceding Article or taxable purchases, etc. subject to transitional measures prescribed in paragraph (3) of that Article, and there is a remainder after deducting the amount set forth in paragraph (1), item (ii) from the amount set forth in paragraph (1), item (i), Article 72-88, paragraph (1) of the New Act is applied by deeming that business operator to be a business operator prescribed in Article 72-88, paragraph (1) of the New Act. In this case, in Article 72-88, paragraph (1) of the New Act, "that amount of consumption tax" is deemed to be replaced with "the remainder obtained by deducting the amount set forth in Article 6, paragraph (1), item (ii) of the Supplementary Provisions of the Act Partially Amending the Local Tax Act, etc. (Act No. 111 of 1994) from the amount set forth in item (i) of that paragraph".

⑤Where a business operator under Article 72-88, paragraph (2) of the New Act (limited to a person who intends to submit a consumption tax return pursuant to Article 46, paragraph (1) of the Consumption Tax Act) files a return under Article 72-88, paragraph (2) of the New Act for a taxable period ending on or after the application date, and the amount that is the basis for calculating the shortfall prescribed in that paragraph for that taxable period includes the amount of consumption tax relating to taxable purchases, etc. subject to transitional measures prescribed in paragraph (3) of the preceding Article, Article 72-88, paragraph (2) of the New Act is applied by treating the amount set forth in paragraph (1), item (ii) as the shortfall prescribed in Article 72-88, paragraph (2) of the New Act for that taxable period.

⑥In addition to what is provided for in the preceding paragraphs, the technical replacement of terms necessary for the application of the provisions of Chapter II, Section 3 and Articles 9-4 through 9-16 of the Supplementary Provisions of the New Act where those provisions apply, and other necessary matters, are specified by Cabinet Order.

The amount that a prefecture that has received payment from the State pursuant to the first sentence of Article 9-6, paragraph (3) of the Supplementary Provisions of the New Act is to pay to another prefecture pursuant to the second sentence of that paragraph is, for the time being, deemed to be the same as the amount that the prefecture is to receive in payment from the other prefecture.

Expenses specified by Cabinet Order that are required in fiscal year 1996 for the development of computer-based information processing systems and other preparations accompanying the State's carrying out of the assessment and collection, etc. of the cargo levy and transfer levy of local consumption tax together with the assessment and collection, etc. of consumption tax pursuant to the provisions of Chapter II, Section 3, Subsection 3 of the New Act and Articles 9-4 through 9-16 of the Supplementary Provisions of the New Act are to be borne by the prefectures as provided by Cabinet Order.

In addition to what is provided for in Article 3 through the preceding Article of the Supplementary Provisions, delinquency charges on local consumption tax, delinquent tax collection procedures and other matters necessary concerning the provisions of Chapter II, Section 3 of the New Act are to be provided for by a separate Act.

①Except as otherwise specially provided, the provisions of the New Act relating to individual municipal inhabitant tax apply to individual municipal inhabitant tax for fiscal years beginning with fiscal year 1995, and with regard to individual municipal inhabitant tax for fiscal years up to and including fiscal year 1994, the provisions then in force continue to govern.

②With regard to the application of Article 314-2, paragraph (1), item (x)-2 of the New Act, for individual municipal inhabitant tax for fiscal year 1995 only, in that item, "760,000 yen" is deemed to be replaced with "700,000 yen"; in item (x)-2, (a)(1) of that paragraph, "100,000 yen" is deemed to be replaced with "50,000 yen"; in item (x)-2, (a)(2) of that paragraph, "100,000 yen" is deemed to be replaced with "50,000 yen" and "330,000 yen" is deemed to be replaced with "300,000 yen"; in item (x)-2, (b)(1) of that paragraph, "450,000 yen" is deemed to be replaced with "400,000 yen"; in item (x)-2, (b)(2) of that paragraph, "450,000 yen" is deemed to be replaced with "400,000 yen", "750,000 yen" is deemed to be replaced with "650,000 yen", and "from 380,000 yen" is deemed to be replaced with "from 320,000 yen"; and in item (x)-2, (b)(3) of that paragraph, "750,000 yen" is deemed to be replaced with "650,000 yen" and "30,000 yen" is deemed to be replaced with "50,000 yen".

③The provisions of Article 328-3 and Appended Table 2 of the New Act apply to the income levy on severance pay or other such compensation (meaning severance pay or other such compensation prescribed in Article 328 of the New Act; the same applies hereinafter in this paragraph) to be paid on or after January 1, 1995, and with regard to the income levy on severance pay or other such compensation to be paid before that date, the provisions then in force continue to govern.

④The provisions of Article 292, paragraph (1), items (vii) and (viii) and Article 313, paragraph (4), item (i) of the New Act apply to individual municipal inhabitant tax for fiscal years beginning with fiscal year 1996, and with regard to individual municipal inhabitant tax for fiscal years up to and including fiscal year 1995, the provisions then in force continue to govern.

In addition to what is provided for in Article 2 through the preceding Article of the Supplementary Provisions, transitional measures and other matters necessary in connection with the enforcement of this Act are specified by Cabinet Order.

The rate of local consumption tax is to be reviewed, taking comprehensively into account the perspective of securing financial resources for expenses required for social welfare, etc., the state of progress of administrative and fiscal reform of localities, the state of rationalization of taxation relating to tax exemptions and other special measures, the state of local finance, etc., and if it is found necessary, required measures are to be taken by September 30, 1996.

The Consumption Transfer Tax Act (Act No. 111 of 1988) is abolished.

①An amount equivalent to one-fifth of the revenue from consumption tax for fiscal year 1996 relating to collections made between March 1997 and May 1997 is to be transferred in July 1997, as an amount equivalent to the consumption transfer tax prior to abolition, in accordance with the rules of Articles 3, 6, 8 and 9 of the Consumption Transfer Tax Act prior to abolition.

②In addition to what is provided for in the preceding paragraph, matters necessary for the application of that paragraph, including the handling of fractional amounts in calculating the amounts to be transferred to each prefecture and municipality, are specified by Order of the Ministry of Home Affairs.