Japan Ruling Coalition Divided over Consumption Tax Cut

Tokyo, April 12 (Jiji Press)--Japan's ruling coalition is increasingly divided over economic measures to deal with inflation and U.S. President Donald Trump's tariff policy.

While House of Councillors lawmakers from the Liberal Democratic Party and its coalition partner, Komeito, are leaning toward a consumption tax cut ahead of this summer's Upper House election, LDP Secretary-General Hiroshi Moriyama and others are seeking a cash handout instead.

Speaking to reporters on Friday, Moriyama warned against calls for a consumption tax cut by stressing the importance of the tax as a source of funding for social security. "What part of social security could we ask people to give up?" he said.

At a press conference the same day, Komeito leader Tetsuo Saito clarified that his party is considering lowering the tax rate for food items, while looking at a100,000-yen handout proposal as a stopgap measure.

LDP members in the Upper House are welcoming Komeito's stance as their sense of crisis grows in the run-up to the Upper House election and the Tokyo Metropolitan Assembly election in June.

[Copyright The Jiji Press, Ltd.]