Consumption tax set to dominate Upper House election debate
For Japanese policymakers, broaching the subject of the consumption tax has traditionally been seen as disturbing a hornet's nest, but the issue is poised to become a defining point of contention during campaigning for the upcoming Upper House election in July.
On the one hand, a cluster of opposition parties are arguing for tax cuts to sustain consumer spending amid soaring prices. Some are calling for a one-off cut limited to food products, as is the case with the Constitutional Democratic Party of Japan. Others, such as the Democratic Party for the People, are suggesting the government make up for any shortfall in tax revenue that arises from a lower rate by issuing debt.
On the other hand, the ruling Liberal Democratic Party appears to be resisting calls for a tax cut and is increasingly tilting toward emphasizing its role as the only party that is able to take responsibility for ensuring the country's financial stability.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NHK
an hour ago
- NHK
Japanese shipping firms mull responses to attack on Iran
Japanese shipping companies are mapping out possible responses to Israel's attacks on Iran on Friday. The companies may need to adjust to any escalation of military action in the Middle East, which Japan relies on for over 90 percent of its crude oil imports. Tokyo-based NYK Line operates about 20 oil tankers and automobile carriers in the region. It says its vessels travel through the Persian Gulf dozens of times a month. The company says it is gathering information to ensure the safety of operations in the Gulf. Depending on conditions, the company may need to consider suspending operations or changing routes. Mitsui O.S.K. Lines and Kawasaki Kisen Kaisha, also known as "K" Line, will alert ships traveling through waters around the Gulf. They will also consider how to ensure the safety of crews and cargoes. Japan's transport ministry says vessels operated by major Japanese shipping companies navigated through the Gulf about 3,500 times in 2024. Energy-related carriers accounted for more than 40 percent of all the trips. Oil tankers traveled most often, 890 times, followed by automobile carriers' 738 times and LNG carriers' 421 times. Energy-related carriers accounted for more than 40 percent of all the trips. The ministry says it will provide shipping companies with the latest information on the ground and urge them to take safety measures.
NHK
9 hours ago
- NHK
Japan outlined plans to cut US trade deficit in tariff talks: sources
Japanese government sources say Tokyo has sought Washington's review of its tariff measures by outlining how Japan intends to cut the US deficit in bilateral trade. Narrowing the deficit is a key demand from President Donald Trump. The sources said Japan explained the roadmap during bilateral tariff negotiations. They added that it contains a plan for Japan to make massive investments in industries, such as automobiles, steel and shipbuilding. They said Japan has also offered to expand its imports of agricultural products, including soybeans, and items such as US vehicles and liquefied natural gas. They said Japan has also expressed willingness to overhaul its systems described by the United States as non-tariff barriers. Japan has been negotiating with the US to allow their leaders to reach some sort of agreement on the sidelines of the Group of Seven summit in Canada next week. Japanese Prime Minister Ishiba Shigeru met heads of the ruling and opposition parties on Thursday to explain how the negotiations had fared. Ishiba told them that he wants a certain degree of headway by the time he meets President Trump during the G7 summit. But he said what matters is achieving an agreement that benefits both Japan and the US. Ishiba added that he will not undermine Japan's national interests by placing too much priority on striking a deal at an early date. Japan is now seeking to hold more ministerial talks with the US until right before the G7 summit. Its chief delegate to the negotiations, Economic Revitalization Minister Akazawa Ryosei, will leave for Washington on Friday.
NHK
2 days ago
- NHK
Long-term damage from Nankai Trough megaquake estimated to be $10 trillion
Japanese experts estimate that long-term economic damage from an anticipated massive earthquake in the Nankai Trough off Japan's Pacific coast could reach 1,466 trillion yen, or about 10 trillion dollars. The Japanese government released new damage estimates on the megaquake in March of this year. It said the costs of structural rebuilding, together with production declines at impacted businesses, add up to 270.3 trillion yen, or about 1.8 trillion dollars. Economic losses during the year after the disaster, including severed roads and railways, would total some 292 trillion yen, or about 2 trillion dollars. A panel of the Japan Society of Civil Engineers estimated the effects of the megaquake on economic activity over the ensuing approximately 20 years. Damage to assets would total 225 trillion yen, or about 1.5 trillion dollars, and economic damage -- an assessment of long-term decline in economic activity -- would total 1,241 trillion yen, or about 8.5 trillion dollars. The panel's figure is more than five times the government estimate in March, and an increase of 56 trillion yen, or about 380 billion dollars, from the panel's previous estimate in 2018. The panel explains that it took into account the results of analyses of production recovery after the Great East Japan Earthquake, and recent price hikes. The estimate does not include the impact of post-quake reconstruction projects. The panel stresses the importance of preparatory measures, noting that 31 percent of the economic damage could be avoided if more than 58 trillion yen, or about 400 billion dollars, were spent on making infrastructure quake-resistant over roughly a decade.
