Prime Minister Takaichi does not provide details on financial resources or support funds; consumption tax reduction bill enters House of Councilors deliberations

On the 11th, the bill related to the consumption tax reduction was entered into deliberation at a plenary session of the House of Councilors, with Prime Minister Sanae Takaichi in attendance, where the purpose was explained and questions were asked. The opposition party asked for detailed explanations of the funding source for the tax cut and the design of the support system for middle- and low-income earners, but the prime minister only stated, ``We will provide detailed explanations that will contribute to deliberations on the bill.''

Continuation of support for middle- and low-income earners, Prime Minister Takaichi emphasizes consumption tax reduction bill enters House of Councilors deliberation

The ruling party plans to continue lobbying the Democratic Party for the People and the New Komeito parties, with the aim of passing the bill in the House of Councilors, where it does not have a majority. The Liberal Democratic Party's House of Councilors Committee on Country Affairs Committee Chairman Hitoshihiko Isozaki and the Constitutional Democratic Party's Committee on Country Affairs Committee Chairman Yoshitaka Saito met in the Diet on the 11th and agreed to convene a special committee of the House of Councilors on the 13th to begin deliberating the bill. The Prime Minister will be present on the same day.

The bill would reduce the consumption tax rate on food products from 8% to 1% for two years starting in April 2027, and provide 1% of the tax as an income-linked ``employee burden reduction support''. The support funds will be fully introduced in fiscal 2021.

At the plenary session, the prime minister reiterated that regarding the support funds, ``We are considering increasing the proportion of eligible people to the total number of active workers to at least the same level as in other countries, which is 30%.'' Komeito responded to Komeito's claim that the minimum annual income to be eligible is ``over 530,000 yen,'' saying ``we take it very seriously.''

Regarding financial resources, he reiterated his previous answer, saying, ``We will secure financial resources without relying on special public bonds (deficit bonds).'' He denied the cash handouts advocated by Ritsumeikan and Komeito as a measure against rising prices.