Japan’s LDP, Komeito, DPFP Discuss Economic Measures; DPFP Makes 15 Additional Requests to Support Wage Hikes, Increase Take-Home Pay

The Yomiuri Shimbun

21:00 JST, November 13, 2024

The ruling Liberal Democratic Party and its junior coalition partner Komeito held the first meeting of policy research council chiefs with their counterpart from the Democratic Party for the People on Tuesday and discussed a comprehensive economic package, which the government is set to compile later this month.

Itsunori Onodera of the LDP, Mitsunari Okamoto of Komeito and Makoto Hamaguchi of the DPFP attended the meeting at the Diet Building. The LDP and Komeito, which now form a minority ruling bloc following last month’s general election, discussed with the DPFP the measures they are considering for the package.

The DPFP presented 15 additional requests to the ruling bloc, including measures to support wage hikes and increases in take-home pay. The three confirmed they would hold further talks later this week.

Of the 15 requests, the DPFP also called for ensuring that companies would be able to pass on higher labor and other costs through their sales prices and increasing subsidies to promote the purchase of clean-energy vehicles.

In addition, the DPFP sought to lower water and power bills during winter by using “extraordinary subsidies for regional revitalization,” which allow local governments to decide how to use the allocated money. The party also requested the fostering of such industries as artificial intelligence and self-driving vehicles to promote a fourth industrial revolution.

The DPFP has already demanded the government to eliminate the “¥1.03 million barrier,” the threshold above which income tax is levied on annual incomes, as well as lowering gasoline taxes to help cut energy prices.

“Many of the [DPFP’s] requests seem to be similar to what we’re considering,” Onodera told reporters following the meeting. “We’ll work to find common ground [with the opposition party].”