Give up consumption tax rate increase: JCP

Japanese Communist Party House of Representatives member Sasaki Kensho in the House Budget Committee meeting on January 24 demanded that plans for the consumption tax rate increase be canceled.

This was in response to Prime Minister Koizumi Jun'ichiro's virtual approval of a possible increase in the consumption tax rate. Koizumi has said 'I would welcome discussions on the subject."

Sasaki revealed that during the eleven years since the consumption tax was introduced in 1989, revenue from the consumption tax tripled from 3.3 trillion yen to 9.6 trillion yen, while corporate tax revenue halved from 19 trillion yen to 10 trillion yen. The consumption tax rate was increased from 3 to 5 percent in 1997.

Pointing out that the consumption tax is regressive, and that its burden is heavier on people with less income, Sasaki asked the finance minister why the government imposes heavier burdens on the people than on corporations. The minister answered that the government tax policy must support corporations that are trying to increase their international competitiveness.

Reminding Sakaguchi Chikara, the Health, Labor, and Welfare minister of the Komei Party, of the public promise the Komei Party made in the 1992 House of Councilors election to abolish the consumption tax, Sasaki asked Sakaguchi to explain this turnabout.

The HL&W minister said, "Election promises are not meant to be binding eternally. Opinions may change with the times."

Sasaki said, "The regressive nature of the consumption tax hasn't changed. What have changed are the Komei Party and ministers. You have been deceiving the people." (end)