Prime Minister Keizo Obuchi said Tuesday he has no intention to reduce the nation's consumption tax and defended the government's proposed plan to implement nearly 7 trillion yen in cuts in personal income and corporate taxes.
"The 2 percentage point hike in the consumption tax in April 1997 was inevitable in view of the growing future social security burden," he said. "And I have no intention to bring the rate down now."
The prime minister made the remarks in response to a statement by Kazuo Shii, the Japanese Communist Party's central committee secretariat, during an afternoon session of the Lower House Budget Committee.