Takaichi Denies Issuing Deficit Bonds for Consumption Tax Cut

Tokyo, Jan. 24 (Jiji Press)--Japanese Prime Minister Sanae Takaichi on Saturday denied the possibility of newly issuing deficit-covering government bonds to realize a zero consumption tax rate on food items.

"If it (the tax cut) is limited to two years, we can certainly manage without issuing special deficit-financing bonds," Takaichi, also president of the ruling Liberal Democratic Party, said in a debate session with other party leaders, which was organized by an internet video site ahead of the Feb. 8 House of Representatives election.

She cited reviewing subsidies and special tax breaks, along with securing nontax revenues, as alternative funding sources.

The LDP included in its policy pledges for the upcoming election for the all-important lower chamber of Japan's parliament a commitment to accelerate discussions on reducing the consumption tax rate to zero for food items for two years.

Also during the debate, the prime minister said she definitely wants to see enacted legislation criminalizing the damaging of the Japanese national flag. The LDP and the Japan Innovation Party included in their coalition agreement the enactment of this legislation during this year's ordinary parliamentary session.

[Copyright The Jiji Press, Ltd.]