A possible cut to the consumption tax rate will be a campaign issue in this summer's election for the House of Councilors, key members of the ruling Liberal Democratic Party and the main opposition Constitutional Democratic Party of Japan have said.
In a speech in the city of Kagoshima on Sunday, LDP Secretary-General Hiroshi Moriyama said, "What will be questioned in this election? One would be the consumption tax."
He criticized opposition parties for advocating a consumption tax cut, saying, "In order to ensure social security, where are they going to seek financial resources for the consumption tax cut?"
Moriyama emphasized, "As a responsible party, the LDP will carry out fiscal management without error for the future of the nation."
CDP leader Yoshihiko Noda told reporters in Sapporo that if the ruling camp does not decide on the consumption tax cut, it will have to become an election issue.
"The inaction (of Prime Minister Shigeru Ishiba's administration) will be an issue," Noda also said, criticizing the administration's failure to offer a cash handout or a tax cut.
The CDP has proposed to cut the consumption tax rate on food items to zero for a limited time. Japan's consumption tax currently stands at 10%, excluding food and some other items for which the tax rate is 8%.
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