Koizumi at last spells out his intent to increase consumption tax rate

At a news conference on June 29, Prime Minister Koizumi Jun'ichiro stated the need for the consumption tax rate to be increased as a way to secure funds for social services.

According to the daily Yomiuri Shimbun of June 30, the prime minister said, "The ruling and opposition parties should discuss when and in what percent the increase should be."

Previously, the prime minister said, "It's good to discuss increasing the consumption tax rate, but the increase will not take place in the remaining two years of my term."

At a news conference on June 30 in Ueda City in Nagano Prefecture, Japanese Communist Party Chair Shii Kazuo said that the prime minister's statement has raised a serious problem because he definitely expressed his intention to increase the consumption tax rate for the first time since the election campaign began.

Shii also pointed out that it is very serious that the prime minister urged the ruing and opposition parties to begin discussing details.

The Japan Business Federation (JBF or Nippon Keidanren) is calling for the consumption tax rate to be increased to 10 percent by FY 2007 and to 18 percent by FY 2025.

JCP Chair Shii said, "The consumption tax is the worst type of regressive tax, and the JCP is opposed to a rate increase and will campaign against it as a focal election issue." (end)