Minister of Economic Revival "Last year's consumption tax hike was the right decision" 12:53, June 8
Nishimura's Minister for Economic Rehabilitation said at a press conference on the 8th that the consumption tax rate hike in October of last year resulted in a tax increase while the economy slowed down. He acknowledged that the raise was the right decision, as it was an important financial resource for
In the revised GDP value announced on the 8th, the growth rate from July to September of last year was revised downward, and the annual rate was flat at 0.02%.
As a result, the consumption tax rate hike in October was carried out amid the economic slowdown, and subsequently, due to the spread of the new coronavirus infection, GDP became negative for the second consecutive term.
Regarding this, Minister of Economic Reconstruction Nishimura said, "The consumption tax is being used as a financial resource that takes a big step towards all-generation social security, which is the free provision of early childhood education and childcare. In that sense, the increase at that timing is I still think it was the right decision."
In addition, Mr. Nishimura said, "There is no change in the recognition that the consumption tax is an important financial resource. This is a benefit of about 13 trillion yen, which is equivalent to a 5% reduction in consumption tax.The first supplementary budget, and the second supplementary budget measures We believe that this will help reduce the burden as we support it."