Finance Minister Kiichi Miyazawa expressed his appreciation Friday for the recent decision by New Komeito, a de facto ally of the ruling Liberal Democratic Party, to push for applying consumption tax revenues only for welfare purposes.
"It is clear that the consumption tax could play a role to improve welfare in the future," he told a regular news conference, while remaining cautious over the decision. "But when it comes to what to do specifically, the idea alone does not justify action unless the people fully understand its meaning.
"I think it is helpful that a political party advocates the idea in that it helps deepen people's understanding," he added.
Miyazawa made the remarks in response to media reports on New Komeito's decision Thursday to include the idea about the consumption tax in its policy platform to be adopted in July.
New Komeito is drawing up the policies to clarify its stance ahead of talks it is expected to hold with the LDP aimed at joining the LDP- Liberal Party coalition government, political sources said.
The party plans to draw up a full report by early July and submit it for approval to a party convention July 24, they said.