Opposition parties urge Takaichi to explain tax cut bill herself

Opposition party officials demanded Sunday that Prime Minister Sanae Takaichi clearly explain her government’s consumption tax cut legislation in parliament herself.

During a televised debate, opposition representatives questioned the lack of details about a planned benefit program included in the legislation, as well as the uncertain economic impact of cutting the tax rate for food to 1% for two years.

“It’s unprecedented that a bill to establish a new system lacks specific figures,” said Yasuhiro Nakagawa of Komeito. “We can’t hold a vote unless details are clarified.”

Nakagawa also argued that the temporary tax cut would be “very problematic,” referring to its potential impact on the agriculture and restaurant industries, as well as on households when the food tax rate is raised back to 8%.

“Nothing specific is stipulated in the legislation,” said Motohisa Furukawa of the Democratic Party for the People. “We want to ask during Diet deliberations,” Furukawa added, calling for the prime minister to attend House of Representatives Financial Affairs Committee meetings.

Yuichi Goto of the Democratic Reform Party pointed out that, given that business operators have not sufficiently reflected higher raw material costs in prices, “tax-included prices are unlikely to fall” even if the consumption tax is reduced for food. Goto said that the tax cut may not relieve consumers’ financial burdens.

Meanwhile, Hideki Murai of the ruling Liberal Democratic Party noted that the government is trying to explain the legislation in various ways, including by presenting figures from cases in other countries. “We seek further efforts by the government, so we can hold highly specific discussions in the Diet,” Murai said.

Regarding the opposition’s request for Takaichi to attend Diet deliberations on the legislation, Murai said, “We take it seriously.”

Takashi Endo of the Japan Innovation Party, the LDP’s coalition partner, called for concessions on measures against inflation to create “a system that allows people to feel secure.”