Why is consumption tax being raised, instead of income or corporate taxes?
Japan will see a rapid decrease in the working population and an increase in retired people as society ages. This demographic situation is forcing the social welfare system to put a heavier burden on those still in the working population.
As such, increasing income taxes and corporate taxes is considered undesirable as it would add what is considered an unfair burden to the working population.
The consumption tax, which is collected from the wider population, including the elderly, is thought by lawmakers to be more appropriate for a hike.