The government and ruling parties do not plan to specify ways to make up for a state revenue loss as a result of a lower tax rate on certain foods when the sales tax is hiked in 2017, Finance Minister Taro Aso indicated Friday.
The government will need to secure around ¥1 trillion to exempt all food items when the consumption tax is raised by 2 percentage points to 10 percent.
The Liberal Democratic Party and its junior coalition partner Komeito were aiming to reach a final agreement Friday on which items would be subject to the consumption tax hike exemption to ease the negative impact on consumer spending.