OPINION: Consumption tax should not be cut, could trigger Japan gov't bond downgrade

The Japanese government has decided at a Cabinet meeting to lower the consumption tax rate on food and beverages. It will be the first time since the tax was introduced in 1989 that the government has moved to cut it.Japan's fiscal condition is among the worst in the world, and now is the time when the country must focus on securing fiscal room to prepare for future increases in spending. The tax rate should not be lowered, and I am surprised by the decision.Prime Minister Sanae Takaichi is seeking to cut the consumption tax as a measure to deal with rising prices, but this departs from sta…READ FULL ARTICLE