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Financing plan for Japan's consumption tax rate reduction on food and beverages

The Takaichi Cabinet is stating it will secure the financial resources for the reduction of the consumption tax rate on food and beverages without relying on deficit-financing bonds, while asserting a solid revenue outlook and market confidence.

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  1. Sanae Takaichi
    Takaichi

    Japan

    Direct quote

    “we will secure those resources without relying on the issuance of deficit-financing bonds”

    Takaichi states resources for food tax reduction will not rely on deficit bonds and pledges to reduce the government debt-to-GDP ratio steadily.

    Source excerpt

    First, with regard to securing the financial resources needed for the reduction in the consumption tax rate on food and beverages, we will secure those resources without relying on the issuance of deficit-financing bonds, in a manner that will ensure the confidence of the market. I do not believe there is any need for concern regarding that. We have a solid outlook for securing the necessary resources. The Takaichi Cabinet will address a number of important challenges, including properly reflecting economic and price developments and establishing the “Strong and Prosperous Japan” Investment Framework, and there are various other fiscal needs as well. As for securing the financial resources for all of those needs, we will consider this matter while keeping in view the overall image of the budget formulation reform that we will undertake in the future. Going forward, within the very...

    On securing financial resources for the consumption tax rate reduction.

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