LDP Virtually Approves Consumption Tax Cut on Food

Tokyo, Aug. 3 (Jiji Press)--Japan's ruling Liberal Democratic Party on Monday virtually approved Prime Minister Sanae Takaichi's plan to lower the consumption tax rate on food from 8 pct to 1 pct for two years from next April.

The LDP's tax system and social security system research commissions held a joint meeting and decided to leave the matter to the chair of the tax system research commission, Itsunori Onodera, after participants expressed pros and cons.

"We will implement the consumption tax cut by fully overcoming the challenges that surfaced during the discussions," Onodera told reporters after the meeting.

It was the second joint meeting of the LDP panels, following the previous meeting on Friday. According to a senior member of the tax panel, 65 participants of the latest meeting expressed support for the tax cut plan, while nine opposed it. At the previous meeting, supporters of the tax cut plan only slightly outnumbered opponents.

After attending Monday's meeting, former Prime Minister Shigeru Ishiba criticized the tax cut plan for lacking fiscal resources.

[Copyright The Jiji Press, Ltd.]