The top policymaker of the governing Liberal Democratic Party came out Sunday against submitting a bill to raise the 5 percent consumption tax in early 2007.
Hidenao Nakagawa, chairman of the LDP Policy Research Council, said on a talk show that beating deflation and cutting back on government spending should come before a tax hike.
His remarks were in response to Finance Minister Sadakazu Tanigaki's recent comments suggesting a bill to raise the consumption tax by a specific margin might be presented to the ordinary session of the Diet that will convene in January 2007.
Nakagawa is thought to have aired his objection to the tax increase because 2007 will see a House of Councilors election and regional elections around the nation.
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