Japan’s Prime Minister Kishida wants to implement “unprecedented measures” to combat the country’s low birthrate.
- Says he’ll be unveilling a general framework by June
- The key policy measure will be a doubling the budget for children’s policies
So far, so good.
But …. Former LDP Secretary-General Akira Amari, a key ally of Kishida said that in order to secure the necessary financial resources thee will need to be “a consumption tax debate at some point”
- says there are high tax rates in Europe and the United States
- and thus raising the consumption tax rate (currently at 10%) would be appropriate
Says a Japanese finance ministry official:
- “It’s the right argument, even if it is painful for the public to hear.”
Kishida will face local elections in April. The Japanese people are already facing cost of living increases they have not experienced for years. Perhaps we’ll get a braver set of policies after the elections.
Amari