In April the rate of consumption tax will rise from 5% to 8%. Moreover, next year, depending on the economic situation, it’s scheduled to rise to 10%. Taking into account the low birth rate and aging society, the purpose of the tax increase this time is to cover the cost of social welfare spending on pensions, medical care and so forth. The ABE cabinet has placed great importance on economic growth, but people are concerned that business, which has been showing signs of recovery, will slow down as a result of the tax increase. In recent years, cabinets have avoided raising consumer taxes. Even KOIZUMI’s cabinet, which was popular with the people, did not raise the subject during its five years in power. The OHIRA cabinet (Liberal Democratic Party) decided to introduce consumer tax in 1979, however, despite revealing in the midst of a general election campaign that the cabinet would not introduce it after all, the LDP lost a huge amount of seats. In 1989 TAKESHITA’s cabinet introduced a consumption tax of 3%, and in 1997 HASHIMOTO’s cabinet raised this to 5%, but both cabinets were forced to withdraw from power. Besides this, the NAKASONE cabinet and the HOSOKAWA cabinet tried to introduce a consumption tax by changing its name to the “sales tax” and “the people’s welfare tax” respectively, but both gave up. Conversely, the current rise in consumption tax by the preceding NODA cabinet (Democratic Party of Japan) was a joint decision made with the LDP and the New Komeito party in exchange for the resignation of the prime minister. However, in the next elections the DPJ suffered a crushing defeat. Afraid that the economy will slip into recession, Abe’s cabinet revealed that the government would implement a five trillion yen stimulus plan. Citizens recognize the necessity for a rise in consumption tax, but suspect that these tax revenues, which are purported to be for welfare, may also be used for the construction of roads or buildings. Some people say that a consumer tax of 8% is still low compared to the rates of around 20% in Europe and other advanced countries. However, in these countries, daily necessities like food are either exempted or only taxed at a minimal rate. The tax is expected to be applied across the board in Japan, so unease is spreading about how this will affect those living on a low income. The rise in consumer tax, in addition to diplomacy and trade, seems to be having a huge effect on the approval ratings for Abe’s cabinet. (From Mach issue 2014 / 2014年3月号より）