Takaichi Announces 2-Year Consumption Tax Elimination for Foods

Tokyo, Jan. 19 (Jiji Press)--Japanese Prime Minister Sanae Takaichi unveiled a plan Monday to reduce the consumption tax rate for food items to zero for two years as part of her ruling Liberal Democratic Party's policy pledges for the upcoming general election.

Excluding foods from the consumption tax is "my strong desire," Takaichi told a press conference to announce her decision to dissolve the House of Representatives, the all-important lower chamber of the country's parliament, on Friday and set the general election for Feb. 8.

The measure could be funded through "a review of all expenditures and revenues, including subsidies, special tax breaks and nontax revenues, without issuing special government bonds," she said while stopping short of going into further details.

The prime minister also said she plans to establish a suprapartisan national congress after the Lower House election for discussions on an integrated reform of the country's tax and social security systems, such as necessary financial resources and a timeline.

Takaichi stressed that a proposed refundable tax credit program, which she advocates, "can help increase take-home pay of middle- and low-income people, who are suffering from the regressive nature of social insurance premiums."

[Copyright The Jiji Press, Ltd.]