All revenues from the 5 percent consumption tax should be used for welfare purposes as part of fiscal reforms in the coming decade, and the levy should be lowered for daily necessities, a Liberal Democratic Party faction led by former Secretary General Koichi Kato said Wednesday.

While a future increase in the consumption tax may be unavoidable, the government should consider a lower rate for daily needs, Kato’s group said in a set of policy proposals released Wednesday.

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