LDP to Mull Consumption Tax Cut as General Election Pledge

Tokyo, Jan. 21 (Jiji Press)–Japan’s ruling Liberal Democratic Party on Wednesday announced its policy pledges for the Feb. 8 House of Representatives election, including a commitment to accelerate discussions on reducing the consumption tax rate to zero for food items for two years. The tax exemption has been advocated by party leader and Prime Minister Sanae Takaichi, who is set to dissolve the all-important lower chamber of the Diet, Japan’s parliament, on Friday for the general election. Regarding Takaichi’s “responsible and proactive” fiscal policy, the campaign platform calls for setting up a new budget quota to expand government investments and enable spending over multiple fiscal years. “The prime minister has long recognized (a consumption tax reduction) as a major option,” LDP policy chief Takayuki Kobayashi told a press conference at party headquarters. Kobayashi said the party decided to consider the tax exemption “as preparation for the future because food prices may remain high,” while noting that the measure will not be permanent. A consumption tax cut for food products has been included the LDP’s coalition agreement with its new partner, the Japan Innovation Party, as a measure to be considered. According to the LDP’s policy pledges, the financial resources and a timeline for the measure will be discussed at an envisioned suprapartisan national congress. The LDP also pledged to “realize a strong economy by advancing bold crisis-management and growth investments” as part of Takaichi’s aggressive fiscal policy stance. On measures regarding foreigners, a key issue also in last year’s election for the House of Councillors, the upper Diet chamber, the LDP vowed to “respond to citizens’ worries and feelings of unfairness,” proposing the establishment of a system to monitor foreigners’ acquisitions of land and housing. It also called for the establishment of an intelligence agency operating overseas, as well as legislation requiring notification for foreigners who conduct intelligence-gathering activities in Japan and their agents. Based on the coalition deal with the JIP, the LDP said it will seek to enact a bill to reduce the number of Lower House seats by 10 pct in the next Diet session. It also called for swiftly creating legislation on setting up a secondary capital for the country. Regarding China, which has ramped up pressure on Japan, the ruling party said it will “respond calmly but resolutely to provocations” while maintaining its aim of promoting “a constructive and stable relationship” with the neighboring country. Policy pledges also include revising Japan’s three key national security-related documents within this year to deal with new forms of warfare and ensure combat sustainability, as well as abolishing the existing rules limiting defense equipment exports to items in five categories such as rescue and transportation. END [Copyright The Jiji Press, Ltd.]