Aso vows to raise consumption tax as planned

January 28, 2019

Tokyo--Japanese Finance Minister Taro Aso said Monday the government will raise the consumption tax rate to 10 pct from 8 pct in October as planned.

"Through the consumption tax hike in October this year, we'll secure a stable revenue source" for implementing measures to cope with the aging of the society, Aso said in a policy speech at plenary sessions of the two chambers of the Diet, Japan's parliament.

While noting that the Japanese economy continues to recover moderately, Aso said there are downside risks to the global economy.

He said Japan is poised to lead discussions for ensuring stable growth of the global economy on such occasions as a meeting of finance ministers and central bank chiefs from Group of 20 countries, set to be held in Fukuoka, southwestern Japan, in June.

Aso delivered the speech after submitting to the Diet a fiscal 2019 draft budget and a second fiscal 2018 supplementary budget plan.

Under the fiscal 2019 budget bill, the government will realize an improvement in the social security system and the suppression of new government bond issuance through the consumption tax hike, Aso said.

On concerns about the possible negative impact of the tax hike on the economy, the finance minister said the government will take sufficient measures to level off fluctuations in demand. Jiji Press