1 Percent Consumption Tax Is Proposed
The chairman of interparty conference on consumption tax cut made a presentation for introducing 1 percent of new tax rate on foods. Although Prime Minister Sanae Takaichi promised in campaign of Lower House election that the rate should be zero percent, the leading parties are pushing 1 percent for a quick start of new rate. The opposition parties argue that the proposal was not a consensus beyond the party lines. To counter opposition parties’ policy for eliminating consumption tax on foods, Takaichi, as the president of Liberal Democratic Party (LDP), proposed zero percent consumption tax on foods for two years in the Lower House election in February. After the election, Takaichi explained that two-year moratorium of consumption tax on foods would be an interim measure until the government introduces refundable tax credit. The details of the system were discussed in National Council on Social Security, a discussion body by representatives of parties that ap...