Consumption tax cuts emerging as key election issue

key takeaways

• Prime Minister Ishiba Shigeru and other Liberal Democratic Party (LDP) leaders have decided not to include a consumption tax cut proposal in the party’s manifesto, despite pressure from within the ruling coalition.
• The party will argue that the opposition parties — all calling for tax cuts in some form — are fiscally irresponsible, though their proposals poll well.
• If the LDP performs poorly, it could weaken the position of the party’s fiscal hawks.