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On March 12, the Democratic Party of Japan (DPJ) submitted a proposal in the House of Representatives to develop immediate measures for addressing the nationwide impact of increased consumption tax on people’s lives and the Japanese economy.
A spike in consumer demand is expected in advance of the tax increase. The proposal will enhance Article 7 of the legislation for the fundamental reform of taxation systems by establishing clear deadlines and directions, aimed particularly at countermeasures against imposing regressive tax burdens and measures regarding car sales, housing construction, and medical services.
After submitting the proposal, DPJ Acting Policy Research Committee Chair Takeaki Matsumoto presented a summary of the proposal to the press. Matsumoto referred to the automobile and housing industries, stating, “The gap between last-minute demand before the tax is increased and the decline in sales afterwards is always greater than initial estimates. The Government has to implement measures in response to such a situation as soon as possible in order to discourage consumers from rushing to make last-minute purchases.” He commented that he and his fellow committee members had submitted the proposal with the aim of encouraging the Government to initiate discussions at an early date.
Regarding cooperation with opposition parties toward the establishment of the proposal, Matsumoto stated “Although some parties are opposed to the very idea of a tax increase, we must face the reality of the situation. I think we will have an opportunity to discuss and gain understanding for the necessary nature of these measures.”
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