@Viva_Viet @Viet @dichoi @liubang @William Hung --- so you see, Japan is now lowering tax rates on imported fresh foods. This means more imports from countries like Vietnam, Philippines, Indonesia, China --- all countries that are the major import sources of fresh food products to Japan. 
See how TPP is such a conduit for more amicable economic fiscal policy!
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Yoichi Miyazawa, chairman of the ruling Liberal Democratic Party’s Research Commission on the Tax System, expressed his intention Wednesday to virtually accept applying a reduced tax rate for fresh foods when the consumption tax rate rises to 10 percent in April 2017.
The LDP tax chief has maintained that the scope of food items to be subject to the reduced tax rate should be significantly narrowed through means such as limiting tax relief to polished rice, due to difficulty in drawing the line between items that should and should not be subject to the lower rate.
However, Miyazawa apparently compromised with coalition partner Komeito, which has been calling for applying the reduced tax rate to a wide range of food and beverage items.
After a meeting of the ruling parties’ tax system panel on the reduced tax rate system, Miyazawa stated at a press conference: “There are two clear lines. Polished rice is a very clear line, and the other line is fresh foods. Both are possible.”
Fresh foods include polished rice. If the 8 percent reduced tax rate is applied to fresh foods, this measure is expected to cause new tax revenues from the higher rate to fall by ¥340 billion annually, significantly larger than the ¥40 billion in lost revenue if the lower rate is applied only to polished rice.
The LDP made the about-face after freeing up financial resources worth ¥400 billion following a decision not to introduce a new system intended to reduce the burden of social security costs on low-income earners.
Meanwhile, Komeito is calling for applying the reduced tax rate to all food and nonalcoholic beverages, which would lead to a loss of ¥1.3 trillion in new tax revenues per year. In future consultations, the LDP and Komeito likely will be engaged in a battle over the ¥1 trillion gap.
LDP OK’s lower tax rate on fresh foods - The Japan News
See how TPP is such a conduit for more amicable economic fiscal policy!
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Yoichi Miyazawa, chairman of the ruling Liberal Democratic Party’s Research Commission on the Tax System, expressed his intention Wednesday to virtually accept applying a reduced tax rate for fresh foods when the consumption tax rate rises to 10 percent in April 2017.
The LDP tax chief has maintained that the scope of food items to be subject to the reduced tax rate should be significantly narrowed through means such as limiting tax relief to polished rice, due to difficulty in drawing the line between items that should and should not be subject to the lower rate.
However, Miyazawa apparently compromised with coalition partner Komeito, which has been calling for applying the reduced tax rate to a wide range of food and beverage items.
After a meeting of the ruling parties’ tax system panel on the reduced tax rate system, Miyazawa stated at a press conference: “There are two clear lines. Polished rice is a very clear line, and the other line is fresh foods. Both are possible.”
Fresh foods include polished rice. If the 8 percent reduced tax rate is applied to fresh foods, this measure is expected to cause new tax revenues from the higher rate to fall by ¥340 billion annually, significantly larger than the ¥40 billion in lost revenue if the lower rate is applied only to polished rice.
The LDP made the about-face after freeing up financial resources worth ¥400 billion following a decision not to introduce a new system intended to reduce the burden of social security costs on low-income earners.
Meanwhile, Komeito is calling for applying the reduced tax rate to all food and nonalcoholic beverages, which would lead to a loss of ¥1.3 trillion in new tax revenues per year. In future consultations, the LDP and Komeito likely will be engaged in a battle over the ¥1 trillion gap.
LDP OK’s lower tax rate on fresh foods - The Japan News
