Only a few smaller opposition parties in Japan are considering a reduction in the consumption tax rate ahead of the general election, with the main opposition and ruling parties supporting the current 10% rate.
“If the consumption tax were to be abolished, it would leave a hole in the budget of more than 20 trillion yen,” Yoshihiko Noda, chairman of the Constitutional Democratic Party of Japan, said on Saturday during a debate organized by Niconico, a Japanese sharing service of videos.
A cut would have a significant impact on local authorities, Noda added, arguing that such a decision could cause market turmoil similar to that caused by the economic measures introduced by then British Prime Minister Liz Truss in 2022 had proposed and were partly responsible for its rapid growth. expulsion.
