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▼ Japan PM Wants Consumption Tax Cut Freeze "As Soon As Possible"
- Category:Event
Japanese Prime Minister Sanae Takaichi said Wednesday she wants to implement a freeze on the country's consumption tax on food products "as soon as possible," despite concerns over the nation's fiscal health amid the ongoing Middle East crisis.
During a one-on-one parliamentary debate with opposition party leaders, Takaichi also said the government will do its utmost to limit debt issuance to support the public, as her government plans to draft a supplementary budget amid concerns the crisis could have a prolonged economic impact.
Her comments come amid rising Japanese government bond yields, partly reflecting market expectations of accelerating inflation in resource-scarce Japan and its worsening fiscal health.
Questions were led for the first time by Democratic Party for the People head Yuichiro Tamaki, as his party holds the most seats in parliament following the Centrist Reform Alliance's defeat in February's election and uncertainty over a merger between its two founding parties in the upper house.
The first half largely focused on Takaichi's decision Monday to tell ruling parties she had ordered a review into formulating a supplementary budget, just over a month after Japan enacted a record 122.31 trillion yen ($769 billion) fiscal 2026 budget, and a shift from her recent comments that it was not required at present.
The prime minister underlined her commitment to her election promise to freeze the 8 percent consumption tax on food products for two years before replacing it with a refundable tax credit system.
She also said she "seriously reflects" on proposals from Tamaki on whether the government should consider an off-ramp from its subsidies to keep gasoline prices below 170 yen per liter at the pump.
The policy, restarted in mid-March, is expected to use up its earmarked 1 trillion yen by the end of June.
During a one-on-one parliamentary debate with opposition party leaders, Takaichi also said the government will do its utmost to limit debt issuance to support the public, as her government plans to draft a supplementary budget amid concerns the crisis could have a prolonged economic impact.
Her comments come amid rising Japanese government bond yields, partly reflecting market expectations of accelerating inflation in resource-scarce Japan and its worsening fiscal health.
Questions were led for the first time by Democratic Party for the People head Yuichiro Tamaki, as his party holds the most seats in parliament following the Centrist Reform Alliance's defeat in February's election and uncertainty over a merger between its two founding parties in the upper house.
The first half largely focused on Takaichi's decision Monday to tell ruling parties she had ordered a review into formulating a supplementary budget, just over a month after Japan enacted a record 122.31 trillion yen ($769 billion) fiscal 2026 budget, and a shift from her recent comments that it was not required at present.
The prime minister underlined her commitment to her election promise to freeze the 8 percent consumption tax on food products for two years before replacing it with a refundable tax credit system.
She also said she "seriously reflects" on proposals from Tamaki on whether the government should consider an off-ramp from its subsidies to keep gasoline prices below 170 yen per liter at the pump.
The policy, restarted in mid-March, is expected to use up its earmarked 1 trillion yen by the end of June.
- 20/5 19:24
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