Japan Press Weekly

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2014 November 19 - 25 [POLITICS]

Old & new ruling parties blame each other for harmful effects from sales tax hike

Prime Minister Abe Shinzo on November 18 expressed his intention to postpone another consumption tax increase planned for next autumn. Following this announcement, three political parties, which colluded together two years ago to raise the sales tax rate, began to shift their responsibility for the failed economic policy onto each other.

In June 2012, after repeating closed-door negotiations, the Liberal Democratic Party (LDP), Komei Party, and the Democratic Party of Japan (DPJ) agreed to increase the sales tax rate in two stages, from 5% to 8% in April 2014 and then to 10% in October 2015.

The latest economic report released by the Cabinet Office shows that Japan’s GDP recorded its second consecutive quarter of negative growth since April. This is because the implemented sales tax hike and price rises caused by Abenomics have significantly weakened personal consumption. Under these circumstances, PM Abe made up his mind to delay implementation of another tax increase until April 2017.

The governing LDP’s coalition partner, Komei Party, has expressed its approval of the prime minister’s decision. On the other hand, the opposition DPJ is insisting that the present sluggish economic situation proves the failure of Abenomics, closing its eyes on the fact that the DPJ drew up the plan to raise the sales tax together with the two other parties.

PM Abe, who is also the LDP’s president, criticized the DPJ by saying that two years ago the then DPJ government approved the tax hike policy without going to the people.

In the upcoming Lower House election, it is important to deliver a voters’ severe verdict on these “three stooges” undermining Japan’s economy and people’s lives.


Past related article:
> Shii calls for cooperation to block another increase in sales tax [November 7, 2014]