The main opposition Constitutional Democratic Party of Japan has begun discussions on a consumption tax cut as a possible key policy pledge for this summer's Upper House election.
While CDP leader Yoshihiko Noda has taken a cautious stance, calls for a consumption tax cut are growing within the party, especially in light of U.S. President Donald Trump's onerous tariff policies.
At a news conference on Friday, Noda admitted that a consumption tax cut is "a policy option at a time when measures to deal with inflation are needed."
Asked if he would support a tax cut, Noda said he would "humbly accept" the conclusion reached during intraparty discussions.
Earlier in the day, the party held a joint meeting of its fiscal and other divisions. More than 20 participants are said to have voiced their opinions, with a majority of them calling for measures such as lowering the consumption tax rate to 5% from the current 10% and reducing the tax rate to zero for food products.
Meanwhile, some participants noted that a tax cut could affect the financing of social security services.
Within the CDP, two study groups are expected to submit proposals for a consumption tax cut to the party leadership soon. One of the groups has drawn up a proposal saying that a tax rate cut to 5% would be desirable.
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