Japan's Ishiba calls for debate on pros and cons of sales tax cut
Cutting the sales tax could increase household income temporarily, but would raise questions on how to pay for Japan's ballooning social welfare and pension costs, Ishiba told a news conference.
"There needs to be a common understanding over the facts" on the pros and cons of a sales tax cut, Ishiba said. "Just looking at one side of the debate won't do," he added.
Ishiba spoke after vowing to remain in office despite his ruling coalition's defeat in upper house elections, which analysts blame in part on voters' frustration over rising living costs.
The premier has repeatedly brushed aside calls from opposition parties to cut Japan's sales tax rate, currently set at 10 per cent except for an eight per cent levy on food products.
In the news conference, Ishiba urged other parties to join discussions on how to cushion the blow from rising inflation, while being mindful of the responsibility to keep Japan's fiscal house in order.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Barnama
5 hours ago
- Barnama
Ringgit Likely To Trade Within RM4.22-RM4.24 Vs Greenback Next Week Ahead Of Fed Decision
WORLD By Fatin Umairah Abdul Hamid KUALA LUMPUR, July 26 (Bernama) -- The ringgit is expected to hover between RM4.22 and RM4.24 next week as the US Federal Reserve (Fed) is anticipated to maintain its policy rate, said an analyst. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said this outlook is tied to the upcoming Federal Open Market Committee (FOMC) meeting, scheduled for July 29–30, 2025. "Based on the interest rate futures market, the Fed is likely to keep the Federal Funds Rate steady at 4.50 per cent. Technical indicators suggest that the US dollar-ringgit exchange rate is currently in a neutral zone," he told Bernama. Meanwhile, SPI Asset Management managing partner Stephen Innes expects the ringgit to trade within a relatively narrow range of 4.2080–4.2280, with trade-related headlines and external sentiment continuing to drive short-term direction. On a Friday-to-Friday basis, the ringgit ended the week better against the greenback, closing at 4.2195/2245 versus 4.2410/2455 previously. However, the local note traded lower against a basket of major currencies. The ringgit depreciated vis-à-vis the Japanese yen to 2.8529/8565 from 2.8517/8549 and declined versus the euro to 4.9507/9566 from 4.9336/9388 at the end of last week. However, it gained against the British pound to 5.6786/6853 from 5.6999/7060 last Friday.
Malay Mail
19 hours ago
- Malay Mail
Ringgit slips against US dollar as traders await clarity on possible Malaysia-US tariff deal
KUALA LUMPUR, July 25 — The ringgit ended lower against the US dollar on Friday, as some investors locked in profits following recent gains, amid lingering uncertainty over the timing of potential Malaysia-United States (US) tariff discussions. At 6pm, the local note eased to 4.2195/2245 against the greenback, compared with Thursday's close of 4.2135/2210. However, the ringgit was firmer against a basket of other major currencies. SPI Asset Management, managing partner Stephen Innes told Bernama that in the absence of fresh catalysts, investors turned to profit-taking, while the stronger greenback globally left the ringgit more exposed. Still, he noted that Japan's recent trade agreement with the US — which included a reduction in auto tariffs from 25 per cent to 15 per cent — could spark expectations of further bilateral deals, potentially involving Malaysia. 'If that happens, it could boost demand for the ringgit,' he said. Bank Muamalat Malaysia Bhd, chief economist Dr Mohd Afzanizam Abdul Rashid echoed the view, noting that the ringgit had slipped 0.1 per cent to 4.2220 against the greenback as the US Dollar Index rose to 97.621 points, likely reflecting profit-taking after the ringgit's 0.5 per cent week-on-week gain. At the close here, the ringgit strengthened against most major currencies. It rose against the Japanese yen to 2.8529/8565 from 2.8751/8804 on Thursday, appreciated versus the British pound to 5.6786/6853 from 5.7080/7182, and edged higher against the euro to 4.9507/9566 from 4.9517/9605. Against regional peers, the ringgit was mostly higher, except for a flat performance against the Indonesian rupiah at 258.5/258.9, almost unchanged from 258.5/259.1 previously. It gained against the Singapore dollar at 3.2937/2978 from 3.2995/3057, rose versus the Thai baht to 13.0268/0478 from 13.0570/0863, and firmed against the Philippine peso to 7.38/7.40 from 7.43/7.45. — Bernama
The Star
20 hours ago
- The Star
Ringgit ends lower vs greenback as traders await tariff clarity
KUALA LUMPUR: The ringgit ended lower against the US dollar on Friday, as some investors locked in profits following recent gains, amid lingering uncertainty over the timing of potential Malaysia-United States (US) tariff discussions. At 6 pm, the local note eased to 4.2195/2245 against the greenback, compared with Thursday's close of 4.2135/2210. However, the ringgit was firmer against a basket of other major currencies. SPI Asset Management, managing partner Stephen Innes told Bernama that in the absence of fresh catalysts, investors turned to profit-taking, while the stronger greenback globally left the ringgit more exposed. Still, he noted that Japan's recent trade agreement with the US - which included a reduction in auto tariffs from 25 per cent to 15 per cent - could spark expectations of further bilateral deals, potentially involving Malaysia. "If that happens, it could boost demand for the ringgit,' he said. Bank Muamalat Malaysia Bhd, chief economist Dr Mohd Afzanizam Abdul Rashid echoed the view, noting that the ringgit had slipped 0.1 per cent to 4.2220 against the greenback as the US Dollar Index rose to 97.621 points, likely reflecting profit-taking after the ringgit's 0.5 per cent week-on-week gain. At the close here, the ringgit strengthened against most major currencies. It rose against the Japanese yen to 2.8529/8565 from 2.8751/8804 on Thursday, appreciated versus the British pound to 5.6786/6853 from 5.7080/7182, and edged higher against the euro to 4.9507/9566 from 4.9517/9605. Against regional peers, the ringgit was mostly higher, except for a flat performance against the Indonesian rupiah at 258.5/258.9, almost unchanged from 258.5/259.1 previously. It gained against the Singapore dollar at 3.2937/2978 from 3.2995/3057, rose versus the Thai baht to 13.0268/0478 from 13.0570/0863, and firmed against the Philippine peso to 7.38/7.40 from 7.43/7.45. - Bernama
