The ruling coalition's tax policy guideline for fiscal 2014 once again reflects the Abe administration's apparent emphasis on providing economic benefits to corporations at the expense of households that will bear the brunt of the consumption tax hike to 8 percent beginning in April.
The Liberal Democratic Party and its coalition partner New Komeito agreed to introduce lower consumption tax rate on daily necessities such as food after the tax rate is increased further to 10 percent, presumably in October 2015, but left vague the time when the reduced rate for necessities will kick in.
Meanwhile, tax breaks on high-income salaried workers — with an annual pay of ¥10 million or more — will be scaled back beginning in 2016.