Japan Ruling Bloc, CDP Continue Refundable Tax Credit Talks

Tokyo, Sept. 30 (Jiji Press)–Senior officials of Japan’s ruling parties and the main opposition Constitutional Democratic Party of Japan on Tuesday affirmed a plan to resume discussions on introducing a refundable tax credit program after the Liberal Democratic Party forms a new leadership team following its presidential election Saturday. The move was confirmed at a meeting among policy chiefs from the LDP, its coalition partner, Komeito, and the CDP. At the meeting, government officials explained similar systems in other countries as examples. The policy chiefs also affirmed a plan to advance discussions on possible challenges to be identified by the government by the next meeting, regarding a refundable tax credit scheme, which provides cash benefits or tax cuts depending on income levels. “Rather than debating whether to introduce such a system, we want to have fruitful discussions on what kind of system to create,” CDP policy chief Satoshi Honjo said in the day’s meeting. “We confirmed that the three parties aim to advance discussions on a refundable tax credit program,” LDP policy head Itsunori Onodera told reporters after the meeting. Outgoing Prime Minister Shigeru Ishiba, also LDP president, and the leaders of Komeito and the CDP earlier agreed to form a panel to discuss a proposal to introduce a refundable tax credit program. Hurdles must be cleared before such a scheme can be introduced, including how to accurately grasp citizens’ income and assets. END [Copyright The Jiji Press, Ltd.]