Japan's Ishiba calls for debate on pros and cons of sales tax cut

Reuters

5 days ago

TOKYO, July 21 (Reuters) - Japanese Prime Minister Shigeru Ishiba on Monday stressed the need to establish a common understanding among parties on the pros and cons of cutting the country's sales tax rate.
Cutting the sales tax could increase household income temporarily, but would raise questions on how to pay for Japan's ballooning social welfare and pension costs, Ishiba told a news conference.
"There needs to be a common understanding over the facts" on the pros and cons of a sales tax cut, Ishiba said. "Just looking at one side of the debate won't do," he added.
Ishiba spoke after vowing to remain in office despite his ruling coalition's defeat in upper house elections, which analysts blame in part on voters' frustration over rising living costs.
The premier has repeatedly brushed aside calls from opposition parties to cut Japan's sales tax rate, currently set at 10% except for an 8% levy on food products.
In the news conference, Ishiba urged other parties to join discussions on how to cushion the blow from rising inflation, while being mindful of the responsibility to keep Japan's fiscal house in order.