Most new LDP, Komei, and DPJ lawmakers support tax increase

Soon after the Upper House election, elected councilors from the ruling Liberal Democratic and Komei parties and the opposition Democratic Party began openly speaking in favor of a consumption tax rate increase, an issue in the election.

These parties are thus lining up to push ahead with the consumption tax rate increase in fiscal year 2007 from the present five percent.

Asked by a national paper whether they support a consumption tax rate increase, about 70 percent answered they do.

On an NHK program aired on July 12, representatives of the LDP and Komei Party argued that the consumption tax rate needs to be increased. In response to the Democratic Party's call for such an increase for maintaining the pension fund, these parties revealed their true aim, said Akahata on July 17.

The Japanese Communist Party, which opposes the consumption tax, maintains that its rate must be reduced to three percent as a first step, and that food should be exempt from the tax. (end)