DPJ Vows Not To Raise Japanese Sales Tax If Voted In

by Mary Swire, Tax-News.com, Hong Kong

28 May 2009

Sales tax rates will remain unchanged for the next four years if the Democratic Party of Japan (DPJ) succeeds in the forthcoming general election, it has been announced.

Unveiling the party's pledge during an interview on May 26, DPJ Secretary General Katsuya Okada announced:

"We won't raise the consumption tax for four years (after winning the election). It's the ruling party that's vague on this issue."

However, Okada has revealed the DPJ hasn't entirely ruled out an increase to the current rate of consumption tax, eventually. The current government wishes to increase the rate by around 5% from 2011.

According to the Secretary General, a proposal for an eventual increase would be included in their election manifesto - but would only be implemented 'if enough support for the measure was received'.

"We'll make it an issue in the election [campaign] and won't suddenly raise the tax rate without notice," he said.

Okada concluded:

"We should debate the issue from the overall perspective of ensuring sources of funds, not just the sales tax."

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