Takaichi Aiming to Outline Consumption Tax Cut by Summer

Tokyo, Feb. 9 (Jiji Press)–Japanese Prime Minister Sanae Takaichi said Monday that she aims to outline a proposed consumption tax cut to zero for food by summer. At a press conference following her ruling Liberal Democratic Party’s landslide victory in Sunday’s election for the House of Representatives, the powerful lower chamber of the Diet, Japan’s parliament, Takaichi said that “I will rack my mind” to realize a two-year consumption tax exemption for food as soon as possible. During the Lower House race, the LDP pledged to accelerate discussions on the issue. She called on opposition parties to join an envisaged national council on social security reform. As the LDP won a two-thirds majority in the Lower House through the election, Takaichi said that she will “take on the challenge” of revising Japan’s Constitution. Such a majority in both Diet chambers is necessary for the parliament to propose constitutional amendment for a national referendum. The prime minister said, “I am determined to work tenaciously to create an environment for holding a national referendum (on constitutional revision) as soon as possible.” Takaichi said she hopes that the LDP’s coalition partner, the Japan Innovation Party, will take a post in her cabinet. In response, JIP leader Hirofumi Yoshimura told a separate press conference Monday, “If so asked, we would consider it positively.” Takaichi sought continued cooperation from opposition parties that are positive on realizing policies. On the potential participation of the Democratic Party for the People in the ruling coalition, Takaichi said, “I would like to pursue the possibility if there is any interest.” Regarding the LDP’s high-profile “slush funds” scandal, Takaichi said she does not intend to declare that the party has obtained public forgiveness through its latest election victory. She added that she wants party members involved in the scandal to “work at full throttle.” On budget compilation, Takaichi said the government will try to secure all necessary funds under its initial budgets, shifting away from the idea of compiling supplementary budgets. Regarding criticism that her administration’s “responsible and proactive” fiscal policy amounts to lax fund management, Takaichi expressed her intention to attach importance to gaining trust from financial markets. “We are always closely watching” foreign exchange market developments, Takaichi said of lingering downward pressure on the yen. On the diplomatic and security fronts, the prime minister said she will visit the United States in March for talks with U.S. President Donald Trump. Referring to Japan-China tensions reflecting her recent remarks on Taiwan, Takaichi said Tokyo will maintain communication with Beijing and respond to the situation “calmly and appropriately.” She also indicated that her government plans to submit a bill to establish a national intelligence bureau during the next Diet session. Takaichi canceled her scheduled appearance in a television debate Feb. 1, due to the treatment of her hand injury. At the press conference, the prime minister rejected a view that she shied away from the TV program, saying: “I had no reason to run away at all. I had been fully prepared for the debate (with leaders of other political parties ahead of the election), taking it as a good opportunity (to promote my policies).” Takaichi added that she hastily decided to cancel her participation after Chief Cabinet Secretary Minoru Kihara strongly advised her to receive medical treatment for her hand injury. Despite her absence from the TV program, Takaichi toured the central prefectures of Gifu and Aichi later on Feb. 1 for stump speeches for the LDP’s candidates in the general election. On the reason for this, Takaichi said, “Candidates asked me never to cancel the campaign speeches.” END [Copyright The Jiji Press, Ltd.]