Consumption tax cut due to high prices: ``It's only a momentary relief'' Poverty supporters fear division

As the prices of daily necessities continue to rise, households with low incomes are forced to live in harsh conditions. Will reducing the consumption tax on food products lead to improvements in people's lives? We spoke to Mitsuharu Ogawa, representative director of Asunoba, a public interest incorporated foundation that works to combat child poverty.

--Prices continue to rise. What is the impact on families with children in need?

"The price of essential goods goes up almost every month, so the damage is huge. I thought the economy would recover and people's lives would get better after the coronavirus outbreak, but it's been the opposite. It looks like it's going to get worse and worse."

``In a survey of support recipients, I heard that they save water for a family and flush it all at once. This is to save on water bills. Thirty percent of elementary and junior high school students do not take a bath every day. Even though the summer is getting so hot... The right to life guaranteed by the Constitution is being threatened.''

--It is said that wages for working people are increasing.

"I don't really feel it. The minimum wage has increased, but the prices of essential goods have become even more expensive, making some items unaffordable. When the price of rice was soaring, some people said, ``I haven't been able to buy it for about a year.''

--The government plans to lower the consumption tax rate on groceries from 8% to 1% next spring.

"In the moment, it may seem like your life has become easier. However, given the pace of price increases, there is a high possibility that prices will soon return to their pre-tax-cut levels, and even rise further. We can't help but think that the effects will be limited. Another problem is that households that buy high-end ingredients benefit more from tax cuts than households that save money and choose cheaper ingredients."

--Is it strange that the benefits extend to a wide range of people?

“It doesn’t lead to correcting disparities…