Japan Press Weekly

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2009 January 14 - 20 [POLITICS]

Consumption tax hike will be inserted into tax-related bill

Prime Minister Aso Taro in a meeting with Finance Minister Nakagawa Shoichi on January 15 agreed to insert the plan to increase the consumption tax in the FY 2011 in the FY 2009 tax reform-related bill as an additional provision.

Faced with objections from some Liberal Democratic Party politicians to such a measure on a consumption tax increase, Prime Minister Aso Taro ordered the government to “implement the government decision.”

Later in the day, Japanese Communist Party Chair Shii Kazuo at a news conference criticized the prime minister for failing to seek approval of the plan in the election. “It runs counter to the principles of parliamentary democracy,” he said.

Shii expressed the JCP’s firm opposition to the plan because a consumption tax increase will only lead to an increase in the poverty rate, widen social disparities, and accelerate the economic downturn.

Shii said, “The government should hold a general election to ask whether the public agrees to the tax hike plan or not. It is unacceptable to unilaterally pave the way for a consumption tax increase without asking for voters’ judgment.”

Questions about a consumption tax increase are arising even from within the ruling parties. “This proves that an overwhelming majority of the people is opposing the consumption tax increase,” Shii added.