LDP to Mull Consumption Tax Cut as General Election Pledge

Tokyo, Jan. 21 (Jiji Press)--Japan's ruling Liberal Democratic Party on Wednesday announced its policy pledges for the Feb. 8 House of Representatives election, including a commitment to accelerate discussions on reducing the consumption tax rate to zero for food items for two years.

The tax exemption has been advocated by party leader and Prime Minister Sanae Takaichi, who is set to dissolve the all-important lower chamber of the Diet, Japan's parliament, on Friday for the general election.

Regarding Takaichi's "responsible and proactive" fiscal policy, the campaign platform calls for setting up a new budget quota to expand government investments and enable spending over multiple fiscal years.

"The prime minister has long recognized (a consumption tax reduction) as a major option," LDP policy chief Takayuki Kobayashi told a press conference at party headquarters.

Kobayashi said the party decided to consider the tax exemption "as preparation for the future because food prices may remain high," while noting that the measure will not be permanent.

[Copyright The Jiji Press, Ltd.]