Tokyo, Nov. 6 (Jiji Press)–The House of Representatives, the lower chamber of the Diet, Japan’s parliament, passed a bill Friday to cut the consumption tax on food as a temporary measure to address soaring prices. The bill was approved at a plenary meeting of the Lower House by a majority vote, with support mainly from the ruling Liberal Democratic Party and its coalition partner, the Japan Innovation Party. It was then sent to the Senate, the upper chamber. Opposition parties criticized the lack of transparency in the funding of the tax cut and the design of a new benefit program. The government and ruling parties aim to have the Diet pass the bill into law by the end of the current session, scheduled to close on Dec. 12. The ruling parties hope to start deliberations on the bill in the Senate as early as Wednesday. As they do not have a majority in the Upper House, they are expected to seek support from the Democratic Party for the People and Komeito, both of which are opposition parties. Prime Minister Sanae Takaichi responded to questions from opposition parties at a meeting of the Financial Affairs Committee of the Lower House prior to the plenary session. She said that more than 30 pct of workers would be eligible for the income-linked benefit program to reduce burdens on low- and middle-income earners. The government had said that about 20 million people with annual incomes of 1 million to 3.5 million yen, accounting for 30 pct of all workers, would be eligible for the program. Takaichi apparently aimed at gaining the understanding of opposition parties by mentioning the expansion of eligibility for benefits. After the question-and-answer session at the committee meeting, the ruling and opposition parties agreed to hold a vote on and send the bill to the plenary session. “The prime minister gave detailed answers,” Shinichi Isa of Komeito told reporters. “We have decided to vote on it in order to allow deliberations to proceed in the Senate.” The bill proposes to cut the consumption tax rate to 1 pct from 8 pct for foods and beverages for two years from April 2027 and to introduce an income-linked benefit program to support low- and middle-income earners. The benefit program will initially be implemented on a scale equivalent to 1 pct of the consumption tax for the first two years, before being fully introduced in fiscal 2029. The consumption tax reduction would be the first since it was introduced in 1989. END [Copyright The Jiji Press, Ltd.]
