Chief Cabinet Secretary Negative Thoughts on Reducing Consumption Tax Rate Corona Impact around July 29, 12:40
Regarding the current economic situation caused by the new coronavirus, Chief Cabinet Secretary Suga pointed out in a morning press conference that the nature of the crisis was different from that at the time of the Lehman shock, and regarding the reduction of the consumption tax rate, It's necessary for me."
In this situation, Chief Cabinet Secretary Suga stated that the current domestic economic situation was, "I have to temporarily limit all domestic and foreign economic activities and have never experienced it before. While socio-economic activities are being resumed step by step, domestic consumption and other pick-ups are gradually starting to recover."
Then, comparing the current situation with the time of the Lehman shock, "the Lehman shock has reduced distribution and capital investment in Japan due to the rapid credit crunch centered on companies, but the character is different from this crisis". He also stated that he will continue to take measures to maintain employment and continue the business.
In addition, the reporters asked, "Is there any idea to consider lowering the consumption tax rate?" , Consumption tax is also subject to tax deferral, but the consumption tax itself is necessary for social security," he said.