Opposition party officials demanded Sunday that Prime Minister Sanae Takaichi clearly explain her government’s consumption tax cut legislation in parliament herself. During a televised debate, opposition representatives questioned the lack of details about a planned benefit program included in the legislation, as well as the uncertain economic impact of cutting the tax rate for food to 1% for two years. Yuichi Goto of the Democratic Reform Party pointed out that, given that business operators have not sufficiently reflected higher raw material costs in prices, “tax-included prices are unlikely to fall” even if the consumption tax is reduced for food.
Goto said that the tax cut may not relieve consumers’ financial burdens. Meanwhile, Hideki Murai of the ruling Liberal Democratic Party noted that the government is trying to explain the legislation in various ways, including by presenting figures from cases in other countries. Regarding the opposition’s request for Takaichi to attend Diet deliberations on the legislation, Murai said, “We take it seriously.” Takashi Endo of the Japan Innovation Party, the LDP’s coalition partner, called for concessions on measures against inflation to create “a system that allows people to feel secure.”
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