Japan's snap election and tax pledge keep nation's finances in spotlight

TOKYO — Japanese Prime Minister Sanae Takaichi on Monday called a snap general election with a vow to suspend an 8 percent food levy for two years, echoing proposals by her rivals despite the potential strain on the country's already precarious finances. A consumption tax cut that many opposition parties have also proposed would create a huge hole in state revenue at a time when concern over Japan's fiscal health is pushing up bond yields to multi-decade highs. Japan levies an 8 percent consumption tax on food and a 10 percent levy on other goods and services, ‍helping to fund rising social welfare costs among a rapidly aging population. Takaichi said that a two-year exemption of the 8 percent food levy will cushion the blow to households from rising living costs. The government will not issue debt to fund the suspension, she said, adding that other measures could include a review of existing subsidies. "We will overhaul past economic and fiscal policy. My administration will put an end to an excessively tight fiscal policy and a lack of investment for the future," Takaichi told a prWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times