Japan Press Weekly

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2014 March 26 - April 1 TOP3 [JCP]

JCP protests against sales tax increase

On April 1, the day the consumption tax rate increased to 8%, the Japanese Communist Party issued a statement in protest against the tax hike. The excerpt of the statement is as follows:

Today, the government forcibly carried out a drastic increase of the consumption tax rate from 5% to 8%. The Abe Cabinet intends to continue imposing tax hikes by making a final decision to increase the tax rate to 10% in December this year.

The JCP expresses its strong protest against the Abe Cabinet’s outrageous imposition of the consumption tax increase on the general public in defiance of their anger, concern, and criticism against the tax increase.

A 1% rise in the consumption tax rate accounts to an additional tax burden of 2.7 trillion yen, and a 3% rise leads to more than 8 trillion yen. This time, the increase constitutes unprecedented burdens heavier than that in 1997 when the consumption tax rate was raised to 5% from 3%. It will deliver a devastating blow to people’s livelihoods and small business operators.

These adverse impacts in every field related to people’s lives will depress household spending which forms the basis of the Japanese economy and therefore undermine the overall economy drastically. Stagnant economic activity will reduce other tax revenues.

The JCP strongly condemns the forcible tax increase which will negatively impact people’s lives as well as Japan’s economy and state of finance.

In addition to criticizing the consumption tax increase, the JCP proposes a plan to rebuild the nation’s finance and secure funds for social welfare without depending on the consumption tax revenue or on cutting spending on social services. The goal of this proposal is to reform the fiscal and economic structures simultaneously in a democratic manner.

In order to implement the reform, it is necessary to change the government stance completely from working in the interests of corporations and financial institutions to working in the interests of the people. The JCP, together with a wide range of people, will do its utmost to make a democratic change in Japan’s political direction.