Finance Ministry Considering Tax Cuts Despite Protests Over Soaring Costs Of Living
Finance Ministry said mulling tax cuts amid protests over soaring cost of living; Public outcry growing against PM Abe’s administration following recent hike in household gas prices while some asking if he should resign amidst controversy following fatal accident at US military base caused after security worker drove into Okinawa woman causing her death.
A finance ministry spokesperson said that tax cuts are under “serious consideration” amid the growing public outcry over the soaring cost of living, exacerbated by a recent gas price hike. They are currently planning on reducing income tax in April 2015 by about 6 trillion yen ($48b) via tax cut plans which comes after seeing this year’s economic growth forecast drop from 1% to 0.5%, making it one of lowest projections of GDP growth since 3 years ago.
The ministry said they have seen protests grow rapidly on social media and elsewhere against Abe’s administration, with citizens demanding that he apologize for lack of sympathy for their feelings and not taking into account their concerns over soaring prices effecting food costs especially following recent meat scandals.
Sales of TVs increased by 46% in second quarter compared to same period last year, while sales of set-top boxes that connect to the internet at home reached record high.
An article about tax cuts in Japan amidst protests over soaring cost of living with examples of social media and elsewhere growing against Prime Minister Abe’s administration following recent gas price hike along with calling for him to apologize amid controversy regarding fatal accident at US military base in Okinawa after security worker drove into woman causing her death.
The finance ministry is currently mulling tax cuts amid a rapidly growing public outcry over the soaring cost of living, which has been exacerbated by the government’s decision to increase gas prices for household consumers. According to protests on social media and elsewhere, the government must take into account citizens’ concerns over soaring prices, especially with regard to food costs following recent scandals involving tainted meat.
As mentioned in the article, Japan’s Cabinet Office announced that all Japanese prefectures experienced an economic growth rate of 0.4 percent or higher for the April-June second quarter, representing positive economic growth after nine consecutive quarters of contraction since early 2012. The Cabinet Office reports that sales of TVs increased by 46% compared to same period last year, while sales of set-top boxes that connect to the internet at home reached a record high during this same period.
The cabinet office said it hopes GDP will increase by 1 percent in fiscal 2014 even if there are uncertainties regarding developments in overseas economies and fluctuations in the global oil price.