Suprapartisan Panel Agrees to Consider Tax Credits in Future

Tokyo, June 10 (Jiji Press)–Japan’s suprapartisan National Council on Social Security agreed at a working-level meeting Wednesday to consider the tax credit part of a proposed refundable tax credit system in the future after implementing its refund part first. A draft of the system, presented last month, calls for skipping tax credits and focusing on refunds in order to swiftly implement the system and reduce administrative workload. The Japan Innovation Party, the junior member of the ruling coalition, and three opposition parties–the Centrist Reform Alliance, the Constitutional Democratic Party of Japan and Komeito–did not oppose focusing on refunds for the time being but called for continuing discussions on the overall system. Among other opposition parties, the Democratic Party for the People proposed a tax credit system with social security premium refunds. On a two-year consumption tax cut for food that would be replaced by a refundable tax credit system, the JIP noted that there is room to consider a plan to lower the tax rate to 1 pct, instead of zero pact, to shorten the time required for updating cash register systems. The CRA and other parties demanded a permanent tax cut to zero pct. The DPFP called for providing cash benefits of about 50,000 yen by the end of the year, rather than cutting the consumption tax rate. Team Mirai also opposed a consumption tax cut and proposed income-linked benefits. END [Copyright The Jiji Press, Ltd.]