LDP tax chief Itsunori Onodera speaks at a working-level meeting of the National Council on Social Security held inside the Diet on the afternoon of June 17. (©Sankei/Ataru Haruna)
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A proposal floated by Liberal Democratic Party Research Commission on the Tax System Chairman Itsunori Onodera at a working-level meeting of the National Council on Social Security—to make the consumption tax on food and beverages "effectively zero"—has drawn sharp criticism from opposition parties, casting a shadow over efforts to finalize a mid-month interim report.
Onodera presented a plan to temporarily reduce the consumption tax rate to 1% for two years, with funds equivalent to that 1% channeled into cash benefits for low-to middle-income households starting around next autumn.
Opposition Pushback
Komeito's Motohisa Furukawa demanded: "If this meeting exists just to fulfill the ruling coalition's campaign pledge, then what was all our discussion for?" He also complained that the proposal contained content that had "barely been discussed."
Takayuki Ochiai of the Centrist Reform Alliance warned that when the tax rate is restored, lower-income households would effectively face a large tax hike, calling the plan "irresponsible."
Constitutional Democratic Party upper house member Michihiro Ishibashi echoed the concern, calling it a proposal with a "predetermined conclusion."
Japan Future Party's Yuya Mineshima said agreement "would be difficult under the current proposal," while Japan Conservative Party's Haruo Kitamura acknowledged the 1% rate but flatly stated the parties would never reach consensus.
Mixed Response
Former LDP welfare minister Shigeyuki Goto said the plan "practically covers" the ruling coalition's campaign pledge of zero food consumption tax. Nippon Ishin no Kai's Satoshi Umemura said it was directionally different from the pledge but had "internal consistency."
A ruling coalition source pushed back at critics, saying: "The opposition will end up being the ones opposing tax cuts—are they really okay with that?"
Internal Doubts
Even within the LDP, voices calling for a true 0% rate as promised, as well as voices opposed to any consumption tax cut at all, continue to simmer. An LDP tax panel official was notably vague on whether intra-party consensus could be reached.
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(Read the article in Japanese.)
Author: Keita Ozawa, The Sankei Shimbun
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