The government is considering introducing multiple tax rates to ease tax burdens when it raises the consumption tax rate by 2 percentage points to 10 percent as planned in April 2017, Chief Cabinet Secretary Yoshihide Suga said Tuesday.
Citing reference to multiple rates to support lower income earners and smaller companies in a tax reform plan adopted by the ruling coalition last year, Suga said, “It is extremely natural that (the government) will introduce reduced tax rates simultaneously when it raises (the consumption tax).”
The top government spokesman said at a news conference that a pledge made by the Liberal Democratic Party in the House of Representatives election last December and a subsequent coalition accord with the Komeito party made a similar “promise” to the public.
Separately, LDP Secretary General Sadakazu Tanigaki said former industry minister Yoichi Miyazawa will replace Takeshi Noda, who has been cautious about implementing a multiple sales tax rate, as chairman of the party’s tax panel. Multiple sales tax rates are widely adopted in Europe.