Japan Press Weekly

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2012 January 11 - 17 [POLITICS]

Over half of public oppose consumption tax hike

The majority of the public are voicing opposition to a consumption tax increase although major newspapers in unison carried pro-tax hike editorials.

Opinion polls released on January 15 by major newspapers with a national circulation show that more than 55% of respondents answered they “oppose” a raise in the consumption tax even if it is to provide “financial resources for social welfare programs” while only around 30% answered they “support” a tax hike.

The government has recently decided on an official outline of the tax plan to increase the consumption tax to 8% in April 2014 and then to 10% in October 2015.

In Asahi’s poll, 57% expressed “opposition” and 34% “support” for a consumption tax increase; in Yomiuri, 55% are in “opposition” and 39% in “favor”; and Nikkei survey shows 56% “against” and 36% “for”.

A large number of respondents said that cuts in the wasteful use of tax revenues and efforts to recover the economy should come first before a tax increase.

The Yomiuri poll shows that 46% answered that they oppose a tax hike “because cuts in the wasteful budget spending is insufficient” followed by 29% saying, “because it will impose an extra burden on households,” and 12% saying, “because the DPJ does not mention it in its manifesto.” In particular, those who answered that the continuation of the Yanba-dam project, which the DPJ was considering as a symbol of the wasteful budget spending, is “inappropriate” reached 55%.

In the Asahi survey, 80% answered that the government should “take into account the nation’s economy” to a “certain” or to a “large” extent.

Tomiyama Yasuichi, a tax accountant and the secretary general of a group dealing with the issue of unfair taxation, said, “Since last autumn, the gap between those who support and those who oppose an increase in the consumption tax has rapidly widened. I think this indicates that people are becoming aware that an extra tax burden would not improve social welfare services no matter what the major papers are claiming.”

Tomiyama also said, “Many people are undergoing hardships and their sources of income are insecure. I think they are also reacting against the government ploy of increasing the consumption tax under the name of disaster recovery while simultaneously cutting corporate taxes.”