US EditionJapan PM Takaichi Considers Suspending Sales Tax on Food in ...
Takaichi's plan to suspend the 8% food sales tax could reduce government revenue by 5 trillion yen annually to support her February election campaign.
- On Jan 17, Prime Minister Sanae Takaichi is considering a temporary suspension of the sales tax on food as an election pledge, and she may dissolve the lower house to hold a Feb. 8 election, two LDP lawmakers said.
- Before taking office in October last year, Sanae Takaichi supported cutting the food sales tax but showed little sign of acting until now as she seeks public backing for spending plans that rattled financial markets.
- The parties have discussed legislation to exempt food and beverages from the 8% consumption tax for two years, with the government assessing market impact before deciding, which would cut revenue by about 5 trillion yen annually.
- A Mainichi report published late on Jan 16 said the government and Liberal Democratic Party will decide after assessing market impact, while a call to the Prime Minister's Office went unanswered on Saturday.
- On the economic front, markets have reacted to fiscal speculation as the yen weakened earlier this month while bond yields and stocks rose on expectations that Sanae Takaichi will expand spending.
11 Articles
11 Articles
Takaichi eyes including zero food tax proposal for election pledge
Japanese Prime Minister Sanae Takaichi is considering including a proposal to temporarily cut the consumption tax on food to zero percent, from the current 8 percent, in her ruling party's campaign pledges for a House of Representatives election she is expected to call soon, government and party sources said Saturday.…
Japan PM mulls to include zero food tax proposal for election pledge
Japanese Prime Minister Sanae Takaichi is considering including a proposal to temporarily cut the consumption tax on food to zero percent, from the current 8 percent, in her ruling party's campaign pledges for a House of Representatives election she is expected to call soon, government and party sources said Saturday.
Channel News Asia
einnews.comJapan PM Takaichi considers suspending sales tax on food in election pledge: Report
The government and Sanae Takaichi's Liberal Democratic Party will carefully assess the market impact before deciding, as scrapping the 8 per cent levy on food sales would cut government revenue by an estimated 5 trillion yen (US$31.6 billion) a year.
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