Finance Minister Kiichi Miyazawa said Wednesday that the government has no intention of immediately raising the consumption tax.
The previous day Miyazawa had said the government will eventually have to double the 5 percent consumption tax as fiscal reform progresses.
"We are not considering any changes to the consumption tax rate now," Miyazawa said. "Discussion on the consumption tax rate is not an imminent matter."
Responding to a question Tuesday in the Lower House Budget Committee about whether the government should raise the spending levy as a way of pursuing fiscal reform, the finance chief said, "I imagine we will be forced to raise the consumption tax rate."
As the first step toward fiscal reform, Miyazawa has asked the Cabinet Office to draw up macroeconomic models so alternatives for dealing with the nation's severe fiscal conditions can be found.
Earlier in the day, Tetsuzo Fuyushiba, secretary general of ruling coalition member New Komeito, criticized the consumption tax hike suggestion, telling members of his party that he would "like to make it crystal clear" that the ruling bloc has no intention at all of raising the tax rate now.