Voters express ‘No!’ to a tax hike

Japan Press Weekly

Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Voters express ‘No!’ to a tax hike

The voters’ verdict in the latest House of Councilors election has turned out to be strong “No!” to a plan put forward by Prime Minister Kan Naoto to increase the consumption tax to ten percent from the present five percent.

Opinion polls conducted soon after the election are reflecting this mood. An Asahi Shimbun survey on July 14 shows that 54 percent of respondents oppose an increase in the consumption tax while 35 percent are in favor. Yomiuri Shimbun on the same day also ran its survey in which 37 percent of respondents think that Prime Minister Kan’s remarks on a raise in the consumption tax may have caused the DPJ defeat in the election.

The election outcome is, in fact, putting brakes on the schedule for a higher consumption tax to be implemented as initially arranged by the Kan Cabinet and the DPJ.

The DPJ was planning to submit a bill to advance the consumption tax rate by the end of March 2011 and to implement the hike within a few years after that. However, some DPJ executives and Cabinet ministers are suggesting that the initial schedule be postponed.

DPJ Policy Chief Genba Koichiro said, “Irrespective of whether the bill will be introduced in March, we should move forward with the debates (on a consumption tax increase).” DPJ Secretary General Edano Yukio said, “We will forget about the original time schedule for now.” Finance Minister Noda Yoshihiko said, “Including the timing and the use of (a higher consumption tax), we will carefully discuss the issue with representatives of other political parties.”

Yet, nothing has changed in regard to the DPJ’s intent to raise the consumption tax rate. Prime Minister Kan is still calling for multi-partisan discussions to work towards an increase in the consumption tax. Liberal Democratic Party President Tanigaki Sadakazu gave a positive reaction to this call, saying, “It’s not good if the discussion on a consumption tax hike itself is limited.” DPJ Secretary General Edano in reply said, “We will pursue common ground inside and outside the party to discuss the issue of a consumption tax increase.”

- Akahata, July 18, 2010