Discussion over Consumption Tax Encouraged
Constitutional Democratic Party of Japan (CDPJ) decided that it would include partial and temporary abolition of consumption tax in their policies for the Upper House election expected in July. Its leader, Yoshihiko Noda, changed his stance which had been negative against erosion of the tax revenue. Other parties also consider consumption tax cut as a main plank for the election to deal with possible economic slowdown caused by tariff policy of President of the United States, Donald Trump. The CDPJ has been against consumption tax cut, and upholding tax credits with benefits. Although Noda was reluctant to introduction of consumption tax cut, as long as appropriate fiscal resource has not found, party members demanded it as a main policy in the election to appeal to the voters. Noda finally accepted their request with a notion that something should be done. The party will promise that consumption tax rate on foods is reduced to zero for a year. That temporary measure is considere...