Japan finance chief negative about consumption tax cut|Arab News Japan

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TOKYO: Japanese Finance Minister SUZUKI Shunichi on Friday sounded negative about a proposed temporary cut in the consumption tax rate.

“An extremely careful study is necessary” for the proposal, he said at a press conference, adding that the consumption tax is “an important source of revenue” supporting an envisaged social security system that benefits all generations.

Earlier this month, a group of lawmakers from the ruling Liberal Democratic Party drew up a proposal for the government to consider lowering the consumption tax rate to 5 percent, calling for the reduced rate to be in place until the nation achieves 2 percent consumer inflation stably. The government is expected to come up with a new package of economy-boosting measures later this month.

At a separate press conference Friday, Chief Cabinet Secretary MATSUNO Hirokazu also showed a cautious stance about a consumption tax rate cut, stressing the significance of revenue from the tax for measures for the social security system benefiting all generations.

Jiji Press

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