Diet Begins Discussions on Consumption Tax Cut for Food
Tokyo, Oct. 20 (Jiji Press)--Deliberations began in the House of Representatives, the lower chamber of the Diet, Japan's parliament, on Tuesday on legislation to cut the consumption tax on food and introduce an income-linked benefit program. This set of measures is "the best option in terms of the sufficiency and promptness of support," Prime Minister Sanae Takaichi said during a plenary me...
Debates commenced in Japan's House of Representatives on Tuesday, focusing on legislation to reduce consumption tax on food and establish an income-linked benefit scheme. Prime Minister Sanae Takaichi deemed this set of measures as the most appropriate for providing timely and sufficient support. However, she did not disclose how her administration would finance the estimated 5 trillion yen annual revenue shortfall or outline the structure of the income-linked benefit program.
"We will consider (revenue sources) while taking into account deliberations in the Diet," Takaichi stated. Finance Minister Satsuki Katayama emphasized that the government will identify revenue sources through expenditure and revenue reviews, rather than resorting to deficit-covering bonds to preserve market confidence. This would mark the initial consumption tax reduction since its inception in 1989.
The legislation, backed by the ruling coalition of the Liberal Democratic Party and Japan Innovation Party, holds the status of the most critical issue of the current Diet session, with the Lower House aiming to approve it by early November.
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