Fumio Kishida, a senior Japanese ruling party official seen as among candidates to become next prime minister, on Monday voiced caution over the idea of cutting the sales tax rate to help the economy weather the hit from the coronavirus pandemic.
“The sales tax is a source of revenue to pay for Japan’s social welfare burden...,” Kishida told a television programme, when asked if he opposed cutting it from the current 10% rate.
The government’s decision to raise the sales tax to 10% from 8% in October last year pushed Japan’s economy into recession, even before COVID-19 hammered consumption and exports this year. A group of ruling party lawmakers have recently called on the government to consider cutting the sales tax to cushion the pandemic’s blow on households - an idea senior government officials have ruled out so far.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Factbox: What's next as Japan PM Abe quits, potential successorsThe abrupt resignation of Japan's longest-serving prime minister, Shinzo Abe, triggered an election in his Liberal Democratic Party (LDP) to replace him as its president, followed by a vote in parliament to elect a new prime minister.
Read more »
Japan industrial output rises for second month but retail sales fall againJapan's factory output rose for a second straight month in July, signaling a gradual recovery from the blow delivered by the coronavirus pandemic.
Read more »
Japan July retail sales fall 2.8% year-on-year, government data showsJapanese retail sales dropped 2.8% in July from a year earlier, compared with a median market forecast for a 1.7% decrease, government data showed on Monday.
Read more »
What's next after Japan PM Abe quits? Potential successors?The abrupt resignation of Japan's longest-serving prime minister, Shinzo Abe, on Friday triggered an election in his Liberal Democratic Party (LDP) to replace him as its president, followed by a vote in parliament to elect a new prime minister.
Read more »