Some Differences Seen Among Party Pledges on Consumption Tax Cuts, Parties Look to Stand Out More on Other Policies

Yomiuri Shimbun file photo
The Diet Building in Chiyoda Ward, Tokyo

With the Liberal Democratic Party setting a two-year exemption of food items from the consumption tax as a key part of its official pledges for the House of Representatives election, differences between major ruling and opposition parties have become less clear in terms of measures to support household finances by increasing take-home pay.

However, differences remain on when and on which items they will seek consumption tax cuts.

Regarding policy on foreign nationals, the introduction of a selective separate surname system for married couples and constitutional revision, the parties have clear differences in their points of view.

“We want to thoroughly discuss funding sources and schedules at a planned national council that will be composed of ruling and opposition party lawmakers,” LDP Secretary General Shunichi Suzuki said Friday during a television program on NHK, referring to the reduction of the consumption tax.

The LDP initially opposed the reduction, as consumption tax revenue is a vital financial resource for social security. But it included in its official pledges that the party will accelerate discussions on exempting food items from consumption tax for two years, apparently in an aim to avoid making it a major campaign issue. The LDP’s coalition partner, the Japan Innovation Party, kept in step with its coalition partner, using the same expressions in its pledges.

In contrast, the Centrist Reform Alliance, a new party formed by the Constitutional Democratic Party of Japan and Komeito, vowed in its policy platform to permanently eliminate the consumption tax on food items from autumn.

The Democratic Party for the People calls for uniformly lowering the rate to 5%, while Sanseito and Reiwa Shinsengumi advocate for the abolition of the consumption tax. Seeking to eventually abolish the tax, the Japanese Communist Party calls for immediate reduction of the rate to 5%.

While the CRA calls for the creation of a tax credit system with cash payments that would combine direct cash payments and income tax cuts, the LDP and the JIP says in their pledges that they will discuss the design of the system.

In response to rising prices, the JIP lists a measure to increase subsidies for electricity and gas rates. The CRA aims to expand rent subsidies, while the DPFP pledges raising residential tax deduction.

Regarding policy on foreign nationals, the LDP pledges to review laws and rules on the acquisition of housing and land by foreigners. The DPFP aims to enact a law regulating land acquisition by foreigners, while Sanseito seeks imposing strict limits on the number of foreign nationals Japan accepts.

The CRA pledges aiming for a society of multicultural coexistence, and the JCP and Reiwa advocate drawing a clear line against exclusionist ideas, placing their focus on coexistence.

The CRA, DPFP, JCP and Reiwa advocate for the introduction of a separate surname system for married couples. The LDP and JIP pledge expanding the use of premarital surnames.

The LDP, JIP and DPFP say they will seek constitutional revision. The CRA says it will deepen discussions on the matter, while the JCP and Reiwa are taking a stance of opposing revision.

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