2026 POLLS: Japan Parties Focus on Measures to Support Daily Life

Tokyo, Jan. 28 (Jiji Press)–In their campaign for the Feb. 8 general election, Japanese political parties are focusing on measures to support people’s daily lives amid inflation. The ruling Liberal Democratic Party and its new coalition partner, the Japan Innovation Party, have pledged to cut the consumption tax rate on food to zero for two years. The Centrist Reform Alliance, a new party formed by the Constitutional Democratic Party of Japan and Komeito, is proposing a permanent zero tax rate for food, while the Democratic Party for the People is calling for the tax to be kept at 5 pct until wages increase steadily. Reiwa Shinsengumi is calling for the immediate elimination of the tax. Sanseito is proposing phasing out the tax. The Japanese Communist Party is seeking to cut the tax rate to 5 pct for now. Regarding how to finance consumption tax cuts, Prime Minister and LDP President Takaichi Sanae has mentioned a review of government subsidies and special taxation measures. The Centrist Reform Alliance plans to use investment profits from government-owned assets. The JCP is proposing strengthening taxation on large companies and wealthy individuals. Reiwa Shinsengumi is suggesting selling deficit-covering government bonds. Meanwhile, the DPFP plans to create a social insurance premium refund system to ease the burden on working generations. The JIP has vowed to lower insurance premiums for working generations and raise out-of-pocket medical expenses for the elderly. With both condominium prices and rents rising, the Centrist Reform Alliance has pledged to provide rent subsidies for young people. The DPFP plans to curb real estate transactions for investment purposes by introducing a vacancy tax. To create a strong economy, the LDP is promoting strategic investments in economic security, food, energy and other sectors, as well as concentrated investments in growth areas such as artificial intelligence and semiconductors. While each party hopes to appeal to voters by promising tax cuts and economic growth, financial markets are sounding the alarm about Japan’s fiscal outlook. After Takaichi suggested a consumption tax cut, the key yield on 10-year Japanese government bonds soared to 2.38 pct, the highest level in about 27 years. With both ruling and opposition parties pushing for tax cuts, an economist said, “Regardless of who wins, the country will go down the road of fiscal expansion.” It seems necessary for Japanese political parties to not just address voters’ concerns about the country’s future but also gain understanding from financial markets. END [Copyright The Jiji Press, Ltd.]