SDP joins tax increase calls

A Social Democratic Party official in charge of party policies says that a consumption tax rate increase by three percent may be needed as resources necessary for social services.

The daily Tokyo Shimbun on July 2 reported that Abe Tomoko, the SDP policy board chair, was the first SDP official to refer to the need for an increase in the consumption tax rate in its election campaign.

In Japan, the consumption tax was introduced at three percent in 1989 and increased to the present five percent in 1997. Business circles now seek to cover the resources needed for social services with a consumption tax rate increase. The ruling Liberal Democratic and Komei parties, and the opposition Democratic Party of Japan also expect a consumption tax rate increase to secure financial resources for the pension system.

The Japanese Communist Party, in contrast, in opposition to an increase in the consumption tax rate on the grounds that it will impose heavier burden on people, calls for a review of wasteful public works projects and an appropriate collection of corporate taxes in order to secure the resources needed for the pension system. (end)