Bank of Japan's ETF holdings may help fund tax cut, LDP executive says

TOKYO, Aug 6 : Tapping the Bank of Japan's holdings of exchange-traded funds (ETF) may be an option to fund a planned sales tax cut, a ruling party executive said in a recent online programme, a sign its vast asset holdings could come under the political spotlight.The government on Wednesday signed off on Prime Minister Sanae Takaichi's flagship plan to slash the sales tax on food items to 1 per cent from 8 per cent for two years, pressing ahead despite mounting concerns over the nation's already strained finances.Takaichi has pledged not to rely on fresh debt issuance and instead look for non-tax revenues to fund the revenue shortfall, estimated around 5 trillion yen ($31.71 billion) annually.Daishiro Yamagiwa, a senior lawmaker of the ruling Liberal Democratic Party's (LDP) tax panel, sa