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Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

LDP, Komei, and DPJ say consumption tax increase is their option

The Liberal Democratic, Komei, and Democratic parties are beginning to make clear that they favor a consumption tax increase, after keeping their real intentions secret.

The Liberal Democratic Party broke its silence on the unpopular policy when LDP Secretary General Takebe Tsutomu acknowledged that a consumption tax increase may be necessary during a TV debate broadcast on August 28.

Takebe said. "Costs for social services are enormous. We must cut expenditures and at the same time ask the public for its cooperation."

Asked by the moderator if the LDP platform's call for a drastic tax reform for FY 2007 includes a consumption tax increase, Takebe stated, "Yes, it does."

DPJ President Okada Katsuya stated that the consumption tax should be increased by 3 percentage points to fund pension schemes.

Refuting Takebe's statement that there will be no tax increase on salaried workers, Japanese Communist Party Chair Shii Kazuo pointed out that the tax council of the ruling coalition in December 2004 called for a review of deductions from salaried workers' income.

Takebe said that a review of tax deductions does not necessarily lead to a tax increase.

Shii urged the LDP to retract the ruling coalition tax council's conclusion if the party does not intend to impose a tax increase on workers.

Takebe said, "We won't retract it," thus revealing the real LDP intention to force the people to pay more in taxes.

Commenting on Takebe's remarks later in the day at a news conference, Komei Party leader Kanzaki Takenori said, "It will be unavoidble if the needs press for it." -- Akahata, August 29, 2005