Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

• The issue regard to raising consumption tax

REPORTER: With regard to raising consumption tax, increasing numbers of people are expressing the opinion that it would be advisable to postpone the increase, including Special Advisor to the Cabinet Etsuro Honda. I realize that this is a hypothetical question, but what are your thoughts about the risk of Japan’s credit rating being lowered? How would you address this?

CHIEF CABINET SECRETARY SUGA: As nothing is as yet decided I would like to refrain from making any comment at this juncture.

(Abridged)

REPORTER: The round of meetings with experts concerning the raising of the consumption tax will end today. In total I believe that the Government has sought the opinions of a total of 45 experts, of whom 30, or more than 60 percent, have expressed the view that consumption tax should be raised as planned. What are your thoughts on this outcome?

CHIEF CABINET SECRETARY SUGA: In the meeting of experts to verify future economic and fiscal trends, the Government has sought opinions from a broad range of experts from every sector of society. This is part of the process of making a comprehensive judgment on the state of the economy relating to an increase in the consumption tax. I believe that we have received a broad range of opinions from the personal standpoint of each of these experts. In any event, the results of these meetings will be reported to the Council on Economic and Fiscal Policy, and the Council will also provide its own opinions on this matter.

REPORTER: I have a related question. Members of a study group, including Diet member Kozo Yamamoto, have visited the Prime Minister today, following which they indicated to members of the press that the Prime Minister would be making a decision this evening on the increase in the consumption tax. Is this also your understanding?

CHIEF CABINET SECRETARY SUGA: My understanding is that the round of meetings to seek opinions from experts has come to an end today. The results of these meetings will then be discussed by the Council on Economic and Fiscal Policy. Finally, the Prime Minister will make a decision based on these discussions. I believe that is the manner in which we will proceed.

REPORTER: I have a related question. You just stated that a decision is likely to be made after discussion in the Council on Economic and Fiscal Policy. But until now, you have maintained the stance that the Prime Minister will wait for the second preliminary figures on GDP growth before making his decision. Could you please explain why the timing has now changed?

CHIEF CABINET SECRETARY SUGA: We have not yet decided whether the Prime Minister will make a decision. There is no change to what I have previously stated. The Prime Minister will make a decision on whether or not to raise consumption tax after examining the first and second preliminary figures on GDP growth.

(Abridged)