Japan Press Weekly

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2012 June 13 - 19 [POLITICS]

6 opposition parties agree to scrap consumption tax hike bill

The Japanese Communist Party and 5 opposition parties on June 14 agreed to object to closed-door negotiations between the Democratic, Liberal Democratic, and Komei parties on the consumption tax hike bill, and committed themselves to work to scrap the bill.

JCP Chair Shii Kazuo said at a news conference, “A move by the three parties to conclude the discussions to increase the consumption tax rate in their talks behind closed door and bulldoze their bill through the Diet undermines and taunts the very integrity of the Diet and infringes on the very essence of parliamentary democracy.”

Shii cited that in the talks, the DPJ, the LDP, and Komei agreed to raise the tax rate to 8% in 2014 and to 10% in 2015. He also pointed out that in response to a demand from the LDP and Komei, the DPJ is willing to withdraw its election promises to abolish the medical system for the elderly aged 75 and over and create a guaranteed minimum pension system.

Shii stressed that the three parties’ meeting together gives us a clear indication that the DPJ will go ahead with a tax hike by breaking its previous election promises under pressure from the LDP and Komei.

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On the same day, 152 parliamentarians from all political parties, with the exception of the LDP and Komei, participated in a rally to oppose a vote on the consumption tax hike bill. The rally was organized by a civic group against the tax hike which consists of businesses in the distribution industry and various consumer organizations.

In the rally, JCP Chair Shii Kazuo pointed out that a majority of the general public are in opposition to a consumption tax hike. “The three parties’ backroom deal is unacceptable because it goes against the public will and the DPJ’s election promise. The JCP strongly protests against a higher consumption tax rate. To increase the consumption tax rate as Japan is suffering from a weak economy will have a devastating negative impact. Those who approve the bill have no intent to make a rational decision.”