Diet Debate between Party Leaders: Measures to Deal with High Prices Too Meager

Editorial

14:50 JST, June 12, 2025

The starting time of the latest debate between party leaders was delayed to enable more people to see it, but the substance of the debate turned out to be a competition over handout policies. The judgment of the leaders of each party is questionable.

The last debate between party leaders for the current Diet session has now been held. It had been customary for such a debate to start at 3 p.m., but the start was moved to 6 p.m. in response to opposition parties’ requests to increase public interest. If that is the purpose, the 45-minute total debate time should also be extended in the future.

The main topic of the debate this time was measures to deal with soaring prices.

Yoshihiko Noda, president of the Constitutional Democratic Party of Japan, argued that the consumption tax rate on groceries should be reduced to 0% for up to two years as “the only way to help those in need due to the rising cost of food.”

Prime Minister Shigeru Ishiba countered, “Is it really a good idea to lower the consumption tax, which is an important source of revenue for the social security system?”

Ahead of this summer’s House of Councillors election, major opposition parties, including the CDPJ, are attempting to include consumption tax rate cuts in their election pledges. However, it is hard to say that any party has been able to present persuasive revenue sources to cover the loss of funds.

The Consumption Tax Law stipulates that consumption tax revenues are to be used as a source of funding for social security programs. If revenue sources to fill the hole created by consumption tax rate cuts are not secured, it could result in cuts to social security services, such as a rise in patients’ out-of-pocket payments for their treatments and lower pension benefit levels.

Noda also called for the abolition of the provisional gasoline tax rate. Ishiba stressed the importance of allocating tax revenues to infrastructure development, among other things.

Both the ruling Liberal Democratic Party and its coalition partner Komeito have begun considering handouts of several tens of thousands of yen per capita as a measure against high prices. However, Ishiba only said that it is currently being discussed within the ruling bloc.

Yuichiro Tamaki, leader of the Democratic Party for the People, criticized the cash benefit measure being considered by the ruling parties, saying, “It makes sense to give the money back in the form of tax cuts, not by handing it out before the election campaign.” Seiji Maehara, co-representative of the Japan Innovation Party, called for a reduction in social insurance premiums to increase the take-home pay of the working-age generation.

Prolonged high prices have canceled out the effects of wage increases. Supporting impoverished households is important, but the measures proposed by the ruling and opposition parties are limited to tax cuts and cash handouts, and they lack fresh thinking. It remains questionable whether the cash handouts that had been repeated by the LDP-Komeito administration have been effective.

The ruling and opposition parties need to engage in fundamental discussions from a broader perspective about what measures are truly effective after examining the backgrounds of high prices and what concrete measures are needed to boost growth potential.

Separately, Maehara also proposed that the ruling and opposition parties establish a forum to discuss social security reform. To maintain the social security system, the ruling and opposition parties must not shy away from discussions on increasing the burden on the public.

(From The Yomiuri Shimbun, June 12, 2025)