Final Decision on Tax Cut Left to PM Takaichi: LDP Exec

Tokyo, June 7 (Jiji Press)--The final decision on whether to reduce Japan's consumption tax rate on food to zero pct or 1 pct will be left to Prime Minister Sanae Takaichi, an executive of her ruling Liberal Democratic Party suggested on Sunday.

"We're pursuing a zero pct tax rate, but the issue will ultimately require a political decision," LDP policy chief Takayuki Kobayashi said on a television program.

Since adjusting cash register systems for a 1 pct tax rate would take less time than for zero pct, implementing 1 pct next April is gaining support within the government and ruling parties.

During the TV program, Alex Saito, policy chief of the Japan Innovation Party, the LDP's junior coalition partner, underscored the need to decide simultaneously on the size and timing of the planned temporary tax cut and the introduction of a refundable tax credit system.

Implementing a zero pct tax rate on food is Takaichi's long-standing goal and was included in the LDP's campaign platform for the last House of Representatives election in February.

[Copyright The Jiji Press, Ltd.]