Prime Minister Takaichi defers consumption tax cuts, does not rely on deficit-deficit national bonds - representative question

On the 8th, questions from representatives of each party were asked in a plenary session of both houses of the House of Representatives regarding Prime Minister Sanae Takaichi's policy statement. Regarding the funding for the consumption tax cut on food products and the introduction of the ``employee burden reduction support subsidy,'' the prime minister explained that ``we will secure them through a review of both expenditures and revenues, without relying on special public bonds (deficit bonds).'' The presentation of specific measures has been postponed until the end of the year.

“Consumption tax reduction funding sources should be clearly stated as soon as possible” Tsutsui, Chairman of Keidanren

The prime minister gave examples of special tax measures and reviews of subsidies and funds as means of securing financial resources, and declared that ``this will not leave a hole in social security funding.'' Regarding the overall picture, he only said, ``We will definitely show it in the future budget formulation process.'' The Constitutional Democratic Party of Japan's secretary-general, Tadashi Tanabe, and the Democratic Party of the People's Representative, Yuichiro Tamaki, responded to requests for clear funding sources.

In April next year, the government plans to lower the consumption tax rate from 8% to 1% for a limited period of two years and introduce a system that will provide cash benefits to middle- and low-income active workers.