Tokyo, October 05 (QNA) - Japanese Prime Minister Sanae Takaichi pledged, in a policy speech delivered on Monday, to cut the consumption tax on food products without issuing new bonds, in an effort to win the confidence of the markets.
At the opening of the extraordinary session of parliament (the Diet), which will last 69 days, Takaichi said that her government would work to boost domestic investment by formulating a five-year action plan before the end of the year, while also expressing her determination to enact legislation to reduce the number of seats in the House of Representatives.
The Japanese Kyodo News Agency quoted Takaichi as explaining that the legislation, which provides for cutting the consumption tax on food and beverages from 8 percent to 1 percent for two years starting in April, would be coupled with cash assistance for low- and middle-income earners. It aims to provide households with at least a small measure of financial breathing room amid the current wave of inflation.
Takaichi said that, to maintain market confidence, the government would secure the necessary funds without relying on deficit-financing bonds and urged people not to be concerned.
As part of her efforts to build a strong economy, Takaichi also stressed the need to strengthen investment in risk-management fields such as economic security and cyber defense, as well as in critical industries such as AI technologies and semiconductors, as part of the new five-year plan. (QNA)