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HOME  > Past issues  > 2020 July 1 - 7  > Anti-consumption tax group is urging gov’t to cut sales tax as economic stimulus to combat pandemic
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2020 July 1 - 7 [POLITICS]

Anti-consumption tax group is urging gov’t to cut sales tax as economic stimulus to combat pandemic

July 7, 2020
A liaison council of various organizations seeking to abolish the consumption tax is calling for the lowering of the consumption tax rate from the current 10% to 5% to support small- and medium-sized enterprises experiencing economic distress caused by the coronavirus pandemic.

A member of the liaison council, certified public tax accountant (CPTA) Koto Kyoji, who is also a former Shizuoka University professor, said that Germany reduced the value-added tax rate from 19% to 16% as an economic stimulus measure to combat the coronavirus crisis. He added that the governments of other nations took similar actions, including Norway which decreased the VAT rates for industrial sectors hit especially hard by the COVID-19 crisis, such as the transportation and hotel industries. Koto stressed that to cut the consumption tax rate is an effective and easy way to help prevent SMEs from going bankrupt.

CPTA and Rissho University guest professor Urano Hiroaki pointed out that with the coronavirus pandemic causing a serious sales slump, the government allows struggling small businesses to postpone tax payments, but many of them say they have no prospect of paying taxes even if the payment deadline is delayed one year. He stressed, “The reduction in the consumption tax rate is the economic stimulus measure that benefits all the people.”

Past related articles:
> 90% of general public in survey call for lowering consumption tax rate [May 20, 2020]
> Koike on news show demands cuts in sales tax to 5% as anti-corona economic policy [March 15, 2020]
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