2026 POLLS: New Party Seeks to Scrap Consumption Tax

Nagoya, Feb. 2 (Jiji Press)–Kazuhiro Haraguchi, co-chief of the recently established Tax Cuts Japan & Patriotic Alliance, has called for the abolition of the consumption tax, arguing that ensuing revenue drops could be covered by issuing government bonds and establishing a sovereign wealth fund. A sovereign wealth fund is a mainstream approach among many countries for securing necessary resources, and issuing government bonds is an investment for the future, not debt, he said in a recent interview with news outlets including Jiji Press in the city of Nagoya, central Japan. Ahead of Sunday’s general election for the House of Representatives, the all-important lower chamber of Japan’s parliament, the new party will discuss internally what to do with the consumption tax as fellow co-leader Takashi Kawamura has called for lowering the tax to 5 pct, instead of scrapping it, Haraguchi said. Haraguchi criticized the administration of Prime Minister Sanae Takaichi, who heads the ruling Liberal Democratic Party, saying that it advocates what she calls a responsible and proactive fiscal policy while it is “bullying citizens” with taxes. The co-head played down concerns about rising domestic long-term interest rates, pointing out that credit default swaps, an indicator of government bond stability, have been steady. Citing the unpredictable nature of the market, he advised against panic and called for calm. Haraguchi said that his party was founded with the aim of bringing together people who will scrutinize the government for wasteful spending and wrongdoings, and making a Japanese version of the U.S. Department of Government Efficiency. “We will not allow anything unreasonable or bad,” he said, stressing the importance of creating a force capable of better fighting the current government, even if it is small. He expressed willingness to work with parties that support “Japan’s independence, restoration and salvation” while refusing to cooperate with parties that have engaged in misconduct in the past, are being affected by the Unification Church or are subject to foreign influence. END [Copyright The Jiji Press, Ltd.]