LDP Divided on Consumption Tax Cuts Ahead of Upper House Election

A recent survey revealed a significant division within Japan's ruling Liberal Democratic Party (LDP) regarding the consumption tax. Despite the party leadership's stance against tax cuts, over a quarter of LDP candidates running in the Upper House election expressed support for reducing the consumption tax rate. This internal disagreement highlights potential challenges for the party in presenting a unified economic policy, particularly on the issue of rising prices, a key concern for voters.

The survey, conducted jointly by The Asahi Shimbun and a research group, found that 26% of LDP candidates favored either a temporary or permanent reduction in the consumption tax. Conversely, 51% opposed the idea, while 23% remained neutral. This internal split contrasts with the unified stance of several opposition parties, who have actively campaigned for tax cuts to alleviate the financial burden on the public.

The LDP's official platform for the election campaign focuses on direct cash payments and other measures, but does not include any consumption tax cuts. This is in contrast to the opposition parties, many of whom are advocating for a temporary zero percent tax rate on food. The survey also highlighted the varying positions of the LDP's coalition partner, Komeito, where the majority of candidates remained neutral on the issue of tax cuts.