rki.news | Source: Xinhua
Japan’s House of Representatives on Friday passed a government-backed bill to reduce consumption tax on food and beverages, despite opposition criticism and concerns over funding.
The bill, promoted by Prime Minister Sanae Takaichi’s government, was approved with support from the ruling Liberal Democratic Party (LDP) and its coalition partner, the Japan Innovation Party, which together hold around three-quarters of lower house seats.
The proposed measure would reduce the tax from 8 percent to 1 percent for two years starting in April.
However, the government has yet to explain how it will finance the reduction. Opposition parties warned that the proposal could face difficulties in the upper house, where the ruling coalition lacks a majority.
Former Prime Minister Shigeru Ishiba and several ruling party lawmakers walked out before the vote.
Ishiba said the funding source remained unclear and warned that the measure could undermine fiscal discipline. Komeito leader Mitsunari Okamoto also criticised the bill’s passage.
