Japan Press Weekly

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2007 April 18 - 24 [POLITICS]

LDP intends to start discussion on consumption tax hike after Upper House election

Tsushima Yuji, the head of the Liberal Democratic Party Research Commission on the Tax System, in his lecture in Tokyo on April 16 expressed his intention to formulate by the end of this year a comprehensive tax reform plan that includes a policy on the consumption tax rate.

Recalling that the LDP had lost the previous House of Councilors election three years ago in which the pension system reform was a major issue, Tsushima emphasized that the tax reform issue should not be taken up in the House of Councilors election slated for this summer.

He proposed that the ruling and the opposition parties start discussing tax reform after the national election, and encouraged the Democratic Party to join in on a tax reform, including setting the consumption tax rate.

Although Tsushima avoided stating whether he intends to increase the consumption tax rate, he suggested that if the rate is to be increased, it should be made in one shot, not in a step-by-step manner. - Akahata, April 17, 2007