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Japan Moves to Slash Food Consumption Tax
['News On Japan']
News On Japan
Senior administration officials increasingly expect higher-than-projected tax revenue to cover much of the cost.
Rising wages are increasing income tax receipts, while inflation is lifting the nominal value of transactions and corporate earnings, potentially pushing total tax revenue above initial forecasts.
Under the ministry’s calculations, the capital would need only about 5 trillion yen to provide services at the national standard, leaving an apparent surplus of approximately 2 trillion yen.
Instead, he promised to use more of the additional tax revenue for child-rearing assistance and a social security system covering all generations.
One possibility is that the government could postpone the return to 8% as a campaign pledge before a national election.