FILE PHOTO: Bags of polished rice are seen at a supermarket corner in Tokyo on June 20, 2025. While the LDP did not include a consumption tax cut in its pledges for the House of Councillors election in July last year, its coalition agreement with the Japan Innovation Party stated that a consumption tax cut for food items would be considered. - AFP
TOKYO: A draft of the Liberal Democratic Party’s official pledges for the House of Representatives election indicates that it will accelerate discussions on exempting food items from consumption tax for two years.
The LDP was set to announce the official pledges on Wednesday evening (Jan 21).
The draft pledges also include promoting “responsible and proactive public finances,” as championed by Prime Minister Sanae Takaichi, who also serves as LDP president. To this end, the party says it will establish a new budget framework to expand investment by the state.
Official campaigning for the election is set to begin on Jan. 27, with voting and ballot counting scheduled for Feb. 8.
Proactive fiscal policy takes prominence in the draft pledges, which say the party will “advance bold and strategic crisis management investment and growth investment to realize a strong economy.”
It adds that the new budget framework for investment is expected to increase tax revenue, which will enable fiscal stimulus across multiple years.
As for reducing the consumption tax, the pledges explain that discussions on “funding sources, schedules and other implementation details will be accelerated” at a planned national council that will be composed of ruling and opposition party lawmakers.
While the LDP did not include a consumption tax cut in its pledges for the House of Councillors election in July last year, its coalition agreement with the Japan Innovation Party stated that a consumption tax cut for food items would be considered.
In line with the coalition agreement, the LDP was also expected to pledge to pass legislation to realise the JIP’s proposed “second capital” concept and to reduce the number of lower house seats by 10 per cent.
On foreign affairs and security, the LDP was expected to pledge to promote a free and open Indo-Pacific centred on the Japan-US alliance. When it comes to persistent tensions with China, the party aims to “build constructive and stable relations,” while vowing to “respond calmly and resolutely to any provocative actions.”
The pledges also include scrapping the five categories of exportable equipment defined by the implementation guidelines for the Three Principles on Transfer of Defence Equipment and Technology. This is meant to ease restrictions and promote defense equipment exports.
To build a system resilient to economic coercion from other nations, the pledges also stress the need to secure a stable supply of critical minerals such as rare earths. Further support will be given for mine development.
Regarding intelligence, including information gathering and analysis, the draft pledges that a “foreign intelligence agency” tasked with gathering information from abroad will be established.
Legalising the use of maiden names, a policy long supported by the prime minister, is also touched on.
At a party executive meeting on Tuesday, Takaichi said, “I will do my utmost to earn the people’s trust for a major shift in fiscal policy through responsible and proactive public finances.” - The Japan News/ANN
