The government's tax commission and the Liberal Democratic Party's tax panel both voiced strong words of caution Friday over the idea of cutting the consumption tax to boost spending and thus shore up the now-moribund economy.
The LDP's Research Commission on the Tax System panel will decide next Wednesday whether tax cuts such as those related to housing purchases could be incorporated into an emergency stimulus package, said Yuji Tsushima, subcommittee chief of the panel. The government's economic package is to be announced Nov. 16.
"It is possible to argue for cutting the consumption tax, but we went through a lot of trouble to raise it," Tsushima said, summarizing the day's discussion at the panel.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.