Opposition parties to pursue financial resources and system design Consumption tax reduction bill to be debated from 20th

The food consumption tax reduction bill will be debated at the plenary session of the House of Representatives on the 20th. While the government and ruling parties have positioned it as the most important issue of the extraordinary Diet session and are aiming for its early enactment, the opposition parties view the issue as unclear financial resources and institutional design. The government will also take on the issue of cash handouts as a measure to combat rising prices. Prime Minister Sanae Takaichi is looking ahead to the House of Councilors deliberations, in which the ruling party does not have a majority, and is hoping to find ways to connect with the opposition parties, but there is no prospect that the gap will be bridged.

Consumption tax cut, cooperation with the Democratic Party of the People: Komeito Secretary-General ``agrees on benefits''

The Democratic People's Democratic Party, Komeito, Constitutional Democratic Party, and Democratic Reform Party are demanding that the funding source for the consumption tax cut be clarified in questions asked by representatives of both houses of the House of Representatives and in the Budget Committee. They also focused on the support for reducing the burden on workers, which the government is aiming to introduce, and called for clarification on the recipients and amounts.

Regarding financial resources, the Prime Minister denied that the government is running a deficit, but said only that it would be secured through a review of both expenditures and revenues. Regarding the recipients of the subsidy, he only said, ``Under similar systems in other countries, it is approximately 30% of the currently employed people,'' without providing a specific amount.

The opposition parties plan to demand in-depth answers from the Prime Minister and Finance Minister Satsuki Katayama during deliberations on the bill. At a press conference on the 16th, Komeito Secretary-General Minorito Nishida emphasized, ``I cannot support the bill as it stands.''

Opposition parties are also poised to press that cash handouts are preferable to a consumption tax cut that is limited to two years. The Democratic People's Democratic Party advocates reducing the burden by around 50,000 yen a year through benefits and a reduction in resident tax. Komeito plans to provide 80,000 yen per citizen over two years. Ritsumeikan has summarized its opinion that providing benefits to middle- and low-income earners is effective. However, the prime minister denies this, saying, ``A consumption tax cut is the best way to provide sufficient and prompt support,'' and the debate is likely to continue on parallel lines.

The bill will move to the House of Representatives Finance and Financial Affairs Committee for deliberation from the 21st, and the government and ruling parties aim to have it passed by the House of Representatives by early November.

The Liberal Democratic Party has proposed a question-and-answer session for the plenary session on the 20th, with Katayama and others answering questions without the prime minister attending. In response to opposition from opposition parties, the Prime Minister accepted his attendance. Komei and democratic reform are demanding that the prime minister be questioned at the Finance and Finance Commission, but Liberal Democratic Party Chairman Hideki Murai has only said, ``We will take this seriously.''

The ruling party wants to minimize the chance for the prime minister to respond, and the battle with the opposition parties is likely to intensify over the form of deliberations.