As Japan prepares for an Upper House election this summer, a, if not the, key issue in the campaign will be the consumption tax.
Economic uncertainty in combination with rising prices are squeezing the budgets of households, businesses and the government. The focus of domestic debate to ease those pressures is the consumption tax.
A growing number of parties and politicians are pressing for relief, most typically in the form of a reduction in the current levy — 10% for most items and 8% for food products. Proposals include across the board cuts, fixed temporary reductions for particular items such as food or gas, or even suspension or cancellation of the tax. The ruling Liberal Democratic Party and the government of Prime Minister Shigeru Ishiba remain committed to the current plan, however, while debating aid for households in the form of subsidies.
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