LDP Divided over Proposed Consumption Tax Cut

Tokyo, July 31 (Jiji Press)--Japan's ruling Liberal Democratic Party is divided over Prime Minister Sanae Takaichi's proposal to cut the consumption tax rate for food from 8 pct to 1 pct for two years starting in April 2027 as an anti-inflation measure.

The LDP held a joint meeting of its research commissions on the tax and social security systems Friday to discuss the proposal.

At the meeting, some supported the tax cut as it was included in the LDP's campaign pledges for the February election for the House of Representatives, the lower chamber of Japan's parliament. The party, led by Takaichi, scored a landslide victory in the poll.

Meanwhile, others expressed concerns over whether financial resources can be secured and over possible difficulties raising the tax rate after two years.

The joint meeting was attended by about 50 lawmakers and lasted around 90 minutes, 30 minutes longer than scheduled.

[Copyright The Jiji Press, Ltd.]