DPFP Demands Review of Income Tax Threshold in Talks with LDP; Gas Prices, Noto Peninsula Support Also Urged

The Yomiuri Shimbun

16:20 JST, November 8, 2024

The Democratic Party for the People demanded a review of the so-called ¥1.03 million threshold, among other measures to increase take-home pay, in its first policy talks with the Liberal Democratic Party held in the Diet on Friday.

Both parties agreed to have another meeting as early as next week, with the chairpersons of their tax system research commissions in attendance.

The DPFP places the highest priority on reviewing the current threshold, where income tax is imposed on annual income exceeding ¥1.03 million. At Friday’s meeting, which was attended by LDP Policy Research Council Chairperson Itsunori Onodera and his DPFP counterpart Makoto Hamaguchi, the DPFP called for the total income tax exemption threshold to be raised to ¥1.78 million, including a basic deduction. The party also demanded some measures to be taken during the current fiscal year.

The two parties also discussed the comprehensive economic measures that the government is set to compile by the end of the month. The DPFP urged for lowering gasoline taxes, as well as electricity and gas bills, and installing air conditioners in gymnasiums which serve as disaster prevention centers. The party also called for measures to support areas in the Noto Peninsula affected by the earthquake and torrential rains.

“I understand that there will be various additional requests [for economic measures], so I want to listen carefully to them,” Onodera told reporters after the meeting.

Hamaguchi said, “We want to ask [the LDP] to do things that can be done right away.”

Komeito was due to hold its first policy talks with the DPFP on Friday afternoon. The LDP and its junior coalition partner Komeito aim to maintain their hold on power through policy discussions with the DPFP, after becoming a minority ruling coalition as a result of the recent House of Representatives election.

The ruling parties will compile a supplementary budget proposal for the current fiscal year, which will underpin the economic measures, with the DPFP. The three parties will also hold talks toward compiling a draft budget for fiscal 2025.

Talks on political reform are also expected between the ruling parties and the DPFP.