Prime Minister Shigeru Ishiba has no plans to reduce the consumption tax rate to help soften the blow from inflation and U.S. tariffs, sources with knowledge of the matter said Friday, brushing aside calls for relief from the opposition and even some ruling party lawmakers ahead of a national election.
Ishiba has already informed senior government officials of his intentions, the sources said, apparently reflecting concern that a tax cut would constrain the government's fiscal space.
Chief Cabinet Secretary Yoshimasa Hayashi said at a press conference that the consumption tax — currently set at 8 percent for food and beverages and 10 percent for other items — is a key revenue source for debt-ridden Japan, adding that reducing the rate would not be "appropriate."
by SkyInJapan