The Democratic Party for the People cannot vote for the consumption tax cut and support payment bill now before the lower house in its current form, party leader Yuichiro Tamaki said at a party meeting on the 4th.
Tamaki said the party would watch how the government responds before deciding its final position. "Approval as things stand is impossible," he said.
The bill would cut the consumption tax rate on food from 8% to 1% for two years from the next fiscal year and create a support payment for low- and middle-income earners.
The DPFP argues that middle-income households will face a sharp rise in their burden when the rate returns to 8% two years later. It has submitted a counterproposal to the lower house that would cut each person's burden by about 50,000 yen, including through a higher resident tax deduction.
"Whether the government and ruling parties will take up our counterproposal — we want to watch that to the end and then decide our vote," Tamaki said.
Komeito weighs in
Komeito is preparing to oppose the bill in the lower house, while leaving its position in the upper house open, according to reports.