Komeito to Oppose Finance Ministry's Tax Benefit Plan

The Daily Yomiuri (Toyko, Japan), September 25, 2015 | Go to article overview

Komeito to Oppose Finance Ministry's Tax Benefit Plan


Komeito, the junior coalition partner of the Liberal Democratic Party, formally decided at a meeting of the party's Committee of Standing Directors on Thursday morning to oppose the Finance Ministry's benefit payment scheme to be applied when the consumption tax is raised to 10 percent in April 2017.

As the party has been strongly seeking to introduce a plan for a reduced tax rate on daily necessities, it judged that the Finance Ministry's plan, which is different in nature from the reduced tax rate system, will not be able to gain public approval.

Tetsuo Saito, chairman of Komeito's Tax Research Council, will inform the LDP of his party's decision on Friday at a meeting of the coalition parties's tax panel to study a reduced tax rate system. The panel is headed by Takeshi Noda, chief of the LDP's Research Commission on the Tax System.

Saito said at the standing committee meeting: "The Finance Ministry's scheme is no good. I will clearly convey [at Friday's meeting] that a reduced tax rate system should be steadily implemented."

Under the Finance Ministry's scheme, a consumer would pay the full 10 percent tax on food and nonalcoholic beverages, including for dining out, and would later receive, upon request, a benefit equivalent to two percentage points of the paid consumption tax. …

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