Only a few smaller opposition parties in Japan are considering a reduction in the consumption tax rate ahead of the general election, with the main opposition and the ruling parties supporting the current rate of 10%.
“If the consumption tax was abolished, it would create a hole of over ¥20 trillion in the budget,” Constitutional Democratic Party of Japan chief Yoshihiko Noda said during a debate hosted by Niconico, a Japanese video-sharing service, on Saturday.
A cut would have a significant impact on local governments, Noda added, arguing that such a decision might cause market turmoil similar to that triggered by economic measures proposed by then-U.K. Prime Minister Liz Truss in 2022, which were in part responsible for her quick ouster.
