Latest news with #JapanInnovationParty
The Sun
4 days ago
- Business
- The Sun
Japan's government to say it is not relying on tax cuts to boost income
TOKYO: Japan's government is distancing itself from tax cuts in its annual policy guidelines, amid heightened volatility in the government debt market driven partly by concerns about the country's tattered finances. The draft of the annual economic and fiscal policy guidelines, presented on Friday, stated that Japan will aim to achieve higher disposable household income through wage growth that consistently outpaces inflation, 'not through tax cuts.' The statement highlights the government's efforts to keep fiscal discipline amid growing calls from politicians for tax breaks to appease voters hit by rising living costs, ahead of an upper house election set for July. The opposition Constitutional Democratic Party of Japan and Japan Innovation Party both have been pushing for a zero consumption tax rate on food for certain periods to cushion the impact of U.S. tariffs and inflation on households. Japan applies an 8% consumption tax for food and 10% for other items, with the proceeds mostly used to fund social welfare costs for a rapidly ageing economy. Komeito, Japan's junior ruling coalition partner, said on Friday it would discuss a potential reduction in the consumption tax rate for food as a key policy topic, though it decided not to include the potential tax cut in its election campaign pledge. Prime Minister Shigeru Ishiba has signalled more stimulus measures to come, but has so far resisted calls for tax cuts, arguing that such breaks would benefit high-income earners more and strain an already tattered budget for social welfare. But some lawmakers even within his Liberal Democratic Party also support the idea of tax cuts, fearing a major LDP defeat in the upcoming election with the support rate for Ishiba's cabinet stuck at around 30%. In an apparent sign of consideration to those voices, the government tweaked the wording on tax cuts in the process of compiling the draft, deleting the original criticism of tax breaks that lack funding sources. The debate on potential tax cuts has fuelled concerns over Japan's worsening public finances and helped boost volatility in the Japanese government bond (JGB) market, with super-long yields having spiked to record highs last month. The draft of the policy guidelines, which will form the basis of budget planning, stressed Japan must work to improve public finances while ensuring an environment where government bonds are issued in a stable manner. It also said Japan should promote domestic ownership of government bonds to avoid further rises in long-term interest rates caused by supply-demand imbalances. Meanwhile, the government effectively pushed back the self-imposed deadline for delivering a primary budget surplus from fiscal 2025 to 'as early as possible during fiscal years 2025 to 2026,' according to the draft. The primary budget balance, which excludes new bond sales and debt-servicing costs, is a key gauge of the extent to which policy measures can be funded without resorting to debt. Japan's public debt stands at more than twice the size of its economy, by far the worst in the industrial world.
The Sun
4 days ago
- Business
- The Sun
Japan shifts focus from tax cuts to wage-driven growth
TOKYO: Japan's government is distancing itself from tax cuts in its annual policy guidelines, amid heightened volatility in the government debt market driven partly by concerns about the country's tattered finances. The draft of the annual economic and fiscal policy guidelines, presented on Friday, stated that Japan will aim to achieve higher disposable household income through wage growth that consistently outpaces inflation, 'not through tax cuts.' The statement highlights the government's efforts to keep fiscal discipline amid growing calls from politicians for tax breaks to appease voters hit by rising living costs, ahead of an upper house election set for July. The opposition Constitutional Democratic Party of Japan and Japan Innovation Party both have been pushing for a zero consumption tax rate on food for certain periods to cushion the impact of U.S. tariffs and inflation on households. Japan applies an 8% consumption tax for food and 10% for other items, with the proceeds mostly used to fund social welfare costs for a rapidly ageing economy. Komeito, Japan's junior ruling coalition partner, said on Friday it would discuss a potential reduction in the consumption tax rate for food as a key policy topic, though it decided not to include the potential tax cut in its election campaign pledge. Prime Minister Shigeru Ishiba has signalled more stimulus measures to come, but has so far resisted calls for tax cuts, arguing that such breaks would benefit high-income earners more and strain an already tattered budget for social welfare. But some lawmakers even within his Liberal Democratic Party also support the idea of tax cuts, fearing a major LDP defeat in the upcoming election with the support rate for Ishiba's cabinet stuck at around 30%. In an apparent sign of consideration to those voices, the government tweaked the wording on tax cuts in the process of compiling the draft, deleting the original criticism of tax breaks that lack funding sources. The debate on potential tax cuts has fuelled concerns over Japan's worsening public finances and helped boost volatility in the Japanese government bond (JGB) market, with super-long yields having spiked to record highs last month. The draft of the policy guidelines, which will form the basis of budget planning, stressed Japan must work to improve public finances while ensuring an environment where government bonds are issued in a stable manner. It also said Japan should promote domestic ownership of government bonds to avoid further rises in long-term interest rates caused by supply-demand imbalances. Meanwhile, the government effectively pushed back the self-imposed deadline for delivering a primary budget surplus from fiscal 2025 to 'as early as possible during fiscal years 2025 to 2026,' according to the draft. The primary budget balance, which excludes new bond sales and debt-servicing costs, is a key gauge of the extent to which policy measures can be funded without resorting to debt. Japan's public debt stands at more than twice the size of its economy, by far the worst in the industrial world.
Yomiuri Shimbun
29-05-2025
- Business
- Yomiuri Shimbun
Soaring Rice Prices: Make Use of Debate to Reform Agricultural Policy
A viewpoint of how to reform agricultural policy in the medium to long term, not just taking emergency measures to reduce rice prices, must not be forgotten. The government and the ruling and opposition parties should deepen discussions from this perspective. Three party leaders — Yoshihiko Noda, president of the Constitutional Democratic Party of Japan; Seiji Maehara, co-representative of the Japan Innovation Party; and Yuichiro Tamaki, leader of the Democratic Party for the People — attended a meeting of the Committee on Agriculture, Forestry and Fisheries at the House of Representatives and debated with newly appointed Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi. It was unusual for the three leaders of the main opposition parties to pose questions together at a standing committee meeting in which the prime minister was not present. It can be said that this indicates that the trend in rice prices has become a central political issue for this summer's House of Councillors election. Currently, the average price of rice per 5 kilograms is in the ¥4,200 range. To lower the price, Koizumi has changed from general competitive bidding to discretionary contracts in releasing stockpiled rice, and he has also decided to sell the rice directly to major retailers. With such steps, Koizumi has stated that the stockpiled rice will be sold for ¥2,000. During the day's deliberations, he also said that he 'aims to sell the newly contracted stockpiled rice for around ¥1,800.' Regarding the government's efforts, Noda said: '[The government] seems to be promoting measures from the consumers' perspective, but producers are concerned. It's also important to achieve a balance.' He pointed out the need to be wary of a situation in which rice prices fall too low, which would deal a blow to farmers. Koizumi said: '[We must] stabilize prices and prevent consumers from turning away from rice. I don't believe that the emergency measures offer suitable prices for producers.' Some observers believe that if farmers' income decreases as a result of lowering rice prices, there will be a string of farmers who will leave the business. As Noda pointed out, it is essential to give consideration to producers. Both Maehara and Tamaki noted that problems with long-standing agricultural policy have caused rice prices to soar. Maehara called for changes in the distribution system, in which rice goes through distributors, wholesalers and retailers before reaching consumers. Koizumi said: 'The distribution of rice is said to be complicated and bizarre. We will analyze the matter carefully.' Tamaki suggested that the government should review its policy of effectively reducing rice paddy acreage, which is aimed at preventing a decline in rice prices by controlling the supply of rice. Koizumi only said that he would consider various reforms. There is a growing global demand for Japanese rice partly due to the Japanese food boom. There is much room to expand rice exports. The policy that in effect reduces rice paddy acreage has reached its limits. It is time to consider a new rice policy that will allow farmers to earn sufficient income through increased production. (From The Yomiuri Shimbun, May 29, 2025)
Asahi Shimbun
19-05-2025
- Politics
- Asahi Shimbun
Nippon Ishin submits bill to Diet to legalize maiden names
Nippon Ishin (Japan Innovation Party) members heads to the Lower House to submit a bill to legalize the use of maiden names as common names on May 19. (Takeshi Iwashita) Opposition Nippon Ishin (Japan Innovation Party) submitted a bill to the Lower House on May 19 to maintain the much-criticized 'one-surname' policy but allow for the legal use of maiden names. The party's plan is a departure from the bill submitted by the main opposition Constitutional Democratic Party of Japan in April to allow married couples to use dual surnames. Nippon Ishin's bill would essentially uphold the principle of 'same family register and same family surname.' But it would also legally recognize a married person's maiden name as a 'common name' if so desired. Currently, couples can use dual surnames for their passports and My Number identification cards, but Nippon Ishin's bill would allow the use of only the legal common names. Public opinion polls have shown increasing support for a change in the legal system to allow couples to register their marriages under dual surnames. There have also been calls within the ruling Liberal Democratic Party to legalize the use of maiden names, but LDP leadership is cautious about consolidating the party's views. Like the bill submitted by the CDP, Nippon Ishin's proposal does not appear to be supported by a majority in the Lower House, so it likely won't be passed during the current Diet session. 'LOSS OF IDENTITY' Article 750 of the Civil Code stipulates that upon marriage, 'the husband or wife shall take the family name of his or her spouse.' This means married couples in Japan are obliged to use the same family name. An overwhelming 95 percent of married couples take the husband's surname, according to a 2023 survey by the Cabinet Office. Critics have said the spouse who loses his or her family name upon marriage faces such disadvantages as a 'loss of identity' and 'inconvenience in daily life and work.' However, opponents of a dual-surname system argue that it would have 'undesirable effects' on the couple's children, and that the 'one-surname' policy is well-established in Japan.' The business community, local assemblies and others have called on the central government to activate discussions to introduce the system as soon as possible. Some LDP lawmakers have proposed keeping the one-surname system but promoting an 'expansion of the use of the maiden name as a common name.' Junior coalition partner Komeito, which submitted a proposal to the Diet to introduce such a system in 2001, wants the ruling parties to establish a forum to discuss the issue. (This article was compiled from reports written by Ryohei Miyawaki and Suzuka Tominaga.)
See - Sada Elbalad
13-02-2025
- Politics
- See - Sada Elbalad
Japan to Accept Medical Evacuees from Gaza
Israa Farhan Japanese Prime Minister Shigeru Ishiba reaffirmed his country's commitment to providing medical treatment for injured individuals from Gaza but clarified that this initiative is unrelated to US President Donald Trump's proposal to resettle Palestinian residents. Speaking during an extended session of the House of Councillors in response to a question from the Japan Innovation Party, Ishiba stated that Japan is carefully considering the possibility of treating a very limited number of patients who face difficulties accessing medical care locally. According to The Asahi Shimbun, Ishiba emphasized that the primary assumption is that these patients will return to their homeland after receiving treatment. The prime minister also stressed that this initiative is separate from Japan's broader human resource development support program, which includes accepting foreign students from Gaza. He made it clear that the objective is not to resettle individuals from Gaza in Japan.
