A group of lawmakers within the Liberal Democratic Party and one in the main opposition Constitutional Democratic Party of Japan are each planning to propose lowering the consumption tax on food products from the current 8% to 0% ahead of the Upper House election, amid price hikes.
The LDP’s league on promoting expansionary fiscal policies decided on Thursday to submit a proposal to the government on permanently eliminating the consumption tax on food products to curb inflation and the impact of U.S. tariffs.
“U.S. President (Donald) Trump called value-added tax a nontariff barrier. We should reform the consumption tax, which has been considered a nontariff barrier,” said Hiroyuki Nakamura, a Lower House LDP lawmaker, referencing reports of Trump likening value-added tax systems to tariffs.
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