The government must apply a reduced rate to certain daily necessities to soften the impact of the second stage of the consumption tax hike in April 2017, even if it means collecting less revenue and creating extra work for some people, Komeito leader Natsuo Yamaguchi said Thursday.
Unveiling its policy platform for the Dec. 14 Lower House election, the junior party in the ruling coalition pledged to speed up discussions with the Liberal Democratic Party on which items to discount, saying agreement is essential to gaining public backing for the next stage, which will complete the levy's doubling to 10 percent.
Under pressure from Komeito, the LDP pledged earlier this week to "aim for" the use of tax breaks on daily necessities when the tax hike is completed.
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