Prime minister discloses his real intention to increase consumption tax rate

Prime Minister Koizumi Jun'ichiro for the first time revealed his view that a consumption tax rate increase will be inevitable in three years. He was answering questions during a televised discussion by political party leaders on October 10.

Japanese Communist Party Chair Shii Kazuo pointed out that the Liberal Democratic Party in its "Manifesto on Reform" clearly states that a conclusion about increasing the consumption tax rate should follow a national discussion. Shii said, "This gives the government a carte blanche for a tax increase."

Koizumi repeated that there would be no consumption tax increase while he is in office in the next three years.

Asked by the moderator if Koizumi sees a consumption tax rate increase as inevitable, he stated, "Looking into the future, beyond the next three years, an increase in the consumption tax rate is inevitable." (end)