Diet Begins Discussions on Consumption Tax Cut for Food

Tokyo, Oct. 20 (Jiji Press)--Deliberations began in the House of Representatives, the lower chamber of the Diet, Japan's parliament, on Tuesday on legislation to cut the consumption tax on food and introduce an income-linked benefit program.

This set of measures is "the best option in terms of the sufficiency and promptness of support," Prime Minister Sanae Takaichi said during a plenary meeting of the Lower House on the day.

However, Takaichi did not elaborate on how her government will secure the roughly 5 trillion yen needed to cover the annual revenue loss from the measures or the design of the income-linked benefit system. "We will consider (revenue sources) while taking into account deliberations in the Diet," she said.

Finance Minister Satsuki Katayama reiterated that the government will secure revenue sources "by reviewing expenditures and revenues, rather than relying on deficit-covering bonds, to maintain market confidence."

This would be the first consumption tax reduction since the tax was introduced in 1989. The government and the Liberal Democratic Party-Japan Innovation Party ruling coalition have positioned the legislation as the most important matter of the current Diet session, aiming to secure approval by the Lower House by early November.

[Copyright The Jiji Press, Ltd.]