Latest news with #Upper House election
Japan Times
2 days ago
- Politics
- Japan Times
Ishiba's fate hangs in balance after U.S. tariffs deal
With Japan and the United States striking a deal on tariffs, the fate of Prime Minister Shigeru Ishiba — who had said he intends to stay on amid ongoing negotiations — hangs in the balance. On Tuesday, U.S. President Donald Trump posted on social media that the two countries had reached a trade deal, with the 'reciprocal' tariff rate set at 15%. Voices are rising within the Liberal Democratic Party that Ishiba should step down from his post to take responsibility for Sunday's Upper House election defeat, in which the LDP-Komeito ruling camp lost a majority in the chamber. Ishiba is expected to meet with three LDP veteran lawmakers who served as prime minister before him — Taro Aso, Fumio Kishida and Yoshihide Suga — Wednesday afternoon in hopes of gaining their support. Several LDP local chapters are calling on Ishiba to step down. The party's youth bureau is expected to hold an online meeting with local chapters later Wednesday. If Ishiba resigns, a party leadership race needs to take place to elect a new president, with behind-the-scenes maneuvering likely on who would throw their hat in the ring. A new parliamentary session would be convened to select a new prime minister, but under a minority government, even the new president will have a hard time getting the necessary votes.
Japan Times
3 days ago
- Politics
- Japan Times
Japan elects record number of women to Upper House
A record number of 42 female candidates were elected in Sunday's Upper House election, marking a step forward for gender representation in Japan's political landscape. Women won 33.6% of the 125 Upper House seats contested on Sunday, up from 35 seats in the last election in 2022. Among the notable winners was a Democratic Party for the People (DPP) newcomer, Mayu Ushida. The 40-year-old former NHK newsreader won a seat in the highly competitive Tokyo district in which 32 candidates vied for seven seats. 'In the course of my campaign, especially since the middle of the election period, I have heard many voices from young women, students and young men — some who are 18 years old and just got the right to vote,' she said. 'I really felt how anxious many of the young working generation are about their future, and felt their strong desire for something to be done.'
Japan Times
3 days ago
- Business
- Japan Times
Consumption tax cut not a given even after Upper House election
A consumption tax cut that was such a pivotal issue in Sunday's Upper House election is not a foregone conclusion given the political realities of a minority government and the economic realities of Japan, some analysts say. In the historic vote, the Liberal Democratic Party-Komeito coalition lost its majority and now controls neither house of parliament, although it still has the Cabinet. It has stood firmly against lowering the consumption tax — which is currently set at 10% for most items and 8% for food and beverages — while most opposition parties have called for a reduction of the tax or simply abolishing it. The problem for the opposition parties is that they might not be able to agree on enough to be effective against a coalition that remains the largest bloc in both houses despite lacking a majority. 'It's probably quite difficult for them to find common ground,' Tomohisa Ishikawa, chief economist at the Japan Research Institute, said of the opposition. Markets may also make consumption tax cuts difficult. Investors were already rattled ahead of the election, in part on the possibility that government revenues could take a hit with the implementation of policies pushed by the opposition. The yield on 30-year Japanese government bonds surged to a record 3.2% last week, and that on 20-year JGBs hit the highest level since November 1999. Bond prices move inversely to yields. "I believe the recent rise in the yield on superlong-term bonds was a sign that Japan's fiscal risks were being taken more seriously,' said Daiju Aoki, regional chief investment officer at UBS SuMi Trust Wealth Management. Prime Minister Shigeru Ishiba stood firm on his stance against the tax cuts right up through election day on concerns about the fiscal stability of the country. 'If we were to implement such a policy, how would we secure funding for social welfare programs?' he said Sunday. While pressure on the government to spend more will undoubtedly increase post-election, Aoki said a tax cut may be implemented in a way that won't seriously hurt fiscal soundness. 'By teaming up with parties against a massive government bond issuance, the LDP and Komeito can still form a majority,' he said. Virtually all opposition parties stress the need for a consumption tax cut, but details are different. The Constitutional Democratic Party of Japan (CDP), which is the largest opposition party and is led by former Prime Minister Yoshihiko Noda, is looking to make food nontaxable for one year. Noda, who is considered to be on the side of fiscal discipline, said his party would only advocate a consumption tax cut that's fully funded and not dependent on bond issuance. The LDP and Komeito could work with the CDP to minimize the fiscal risk, if a consumption tax cut really becomes a policy option, Aoki said. 'In that sense, there might be some short-term volatility, but if the bond market recognizes that there won't be a massive tax cut, I think this will help curb an excessive rise of long-term rates," he said. Pro-fiscal spending parties remain popular, and this does add an element of uncertainty. The Democratic Party for the People (DPP) won 17 seats on Sunday and now has 22. It has said that tax relief can be backed by issuing government bonds. The DPP hopes to temporarily lower the consumption tax rate on all products to 5% until real wages start rising again. Sanseito, which significantly increased its presence by winning 14 seats, advocates eventually abolishing the consumption tax altogether, saying the government can issue bonds to finance the policy. Reiwa Shinsengumi and the Japanese Communist Party have also proposed scrapping the consumption tax. Nippon Ishin no Kai plans to reduce the 8% tax on food to zero for two years.
Japan Times
17-07-2025
- Business
- Japan Times
Komeito hears those hit hardest by rising prices
There are two key questions that voters will seek answers to in Sunday's Upper House election: The more immediate question is how do we overcome the high cost of living? And the longer-term question is how can we build a Japanese economy and social-services infrastructure that are resilient and sustainable? Parliamentarians must heed the voices of those whose lives are hit hardest by soaring prices and do everything possible to alleviate their hardship. Some argue for a tax reduction while others call for a one-time payout. Komeito holds that both are necessary, fully cognizant that neither are lasting remedies. The income-tax reduction we proposed will go into effect by the end of 2025, with 99% of taxpayers projected to receive between ¥20,000 to ¥40,000 each. As for the one-time payment, it will direct ¥40,000 to a single adult under the household municipal tax exemption and to all children under the age of 18; every other adult in that household will receive ¥20,000. When retail prices on rice began soaring, Komeito convinced the government to make available its national reserves to consumers at acceptable price points. We also called for the adoption of limited tender contracts in which the state sets prices when procuring rice, leading to declining rice prices. We further aim to roll out agricultural policies and programs that will not only boost rice production but also ensure that farmers are entitled to a viable income. Komeito recognizes that what people demand from politics above all is a sound political vision that guides the nation toward a better future, not simply stopgap measures to offset mounting consumer prices. Worker wages must outpace the cost of living and employees should rightfully expect actual increases in salaries in a growing economy. To achieve this, the most important step is to incentivize small- and medium-sized firms — which comprise some 70% of the domestic workforce — to better compensate workers. Komeito will help direct a combined private-public sector investment of ¥60 trillion over the next five years that includes reducing taxes on capital investment and promotion of exports. In addition, our party will be developing ways to raise incomes for essential workers across a host of industries and sectors, from medicine and caregiving to disability services, childcare, distribution and construction. More than 126,000 respondents took part in a Komeito policymaking survey conducted online this year. Among those responding, a sizable number complained of the amount they were having to shoulder to repay the education they received. As a result, we are working on a program in which a portion of their repayment will be income-tax deductible. We are doing so to lay the societal groundwork so that those who have had to borrow money to advance their education may avoid the specter of post-graduation financial distress. For public policy to yield tangible results, a country must be able to rely on a stable and sustainable revenue stream. Komeito is proposing the creation of a sovereign wealth fund for the investment of a measure of Japan's vast financial assets. A similar effort has already proven fruitful as a part of the national pension reserve has been invested to yield a cumulative dividend of ¥155 trillion to date. Komeito is aiming to transform Japan from a nation in perennial search of revenues to a nation that perennially generates revenues. Fanned by media reports, a growing number of Japanese are concerned over the illegal activities and disorderly conduct engaged by a small minority of foreign nationals living in Japan. Indeed, a few political parties are openly hostile toward foreign residents and are inciting xenophobia for political ends. Komeito categorically rejects such shameless exclusionist tactics. In spite of its challenges, an inclusive society in which people from abroad coexist in harmony with Japanese citizens offers far greater promise for the future than any alternative. As politicians, we need to remind ourselves where similar missteps have led Japan in the past. Granted, prescriptive policies will be necessary in addressing foreign offenders, including stricter regulations and criminal enforcement. On the foreign-policy front, U.S. President Donald Trump recently announced the imposition of a 25% 'reciprocal tariff' on all Japanese exports to the U.S. from Aug. 1. Komeito maintains that every available diplomatic channel be pursued to negotiate a fair and proper settlement without compromising its principles. If levied, the so-called Trump tariffs are sure to adversely impact the Japanese economy, particularly the automobile industry. Steps must be taken to protect small manufacturers and the agricultural sector from the projected fallout. Japan should also strengthen partnerships with nations that share free-trade agreements; additional economic-stimulus measures may be needed as well. In recognition of the 80th anniversary of the end of World War II, Komeito released its Peacebuilding Vision in 2025 as a roadmap to help guide the international community towards conciliation, cooperation and peace. It has three core components: The first is to establish a framework to enhance through dialogue regionwide security and reassurance in Northeast Asia. The second is for Japan to serve as an intermediary to bridge the differences between those nations with nuclear arms and those without and to prepare the groundwork for Japan to ratify the Treaty on the Prohibition of Nuclear Weapons. The third component is to institute regulatory oversight of advances in AI technologies, focusing on such peaceful uses as ways to combat global warming and climate change. Japan's Constitution is founded on three inalienable democratic pillars: popular sovereignty, respect for basic human rights and commitment to pacificist principles. These pillars must stand in perpetuity. Nevertheless, ideals that were yet to be identified at the time of the Constitution's drafting and new challenges in the modern era have since emerged. Komeito has consistently argued for constitutional augmentation, not amendment, with supplemental articles and/or clauses carefully examined if needed. 'To stand forever with common citizens.' Our party has faithfully abided by that founding principle for over six decades. We are proud of our track record of policymaking, developed from the ideas, aspirations and insights of ordinary people, a resource we believe has no political equal and a role that is indispensable to the parliamentary efficacy of our nation. Tetsuo Saito, a Lower House member since 1993, is the leader of Komeito. In the lead-up to the July 20 Upper House election, The Japan Times reached out to the nation's major political parties requesting an op-ed for our Opinion pages on why this election is so crucial and why their party deserves the citizens' vote. We are publishing all those who responded.
Wall Street Journal
14-07-2025
- Business
- Wall Street Journal
JGBs Fall on Japan's Fiscal Worries Ahead of Upcoming Election
0010 GMT — JGBs fall in price terms in the morning Tokyo session on Japan's fiscal worries ahead of the Upper House election on July 20. Regardless of the election's results, JPMorgan sees two key takeaways emerging. First, uncertainty about the consumption tax cut debate will probably continue, two members of JPMorgan's Japan Fixed Income Strategy say in a note. Second, the risk balance is tilted toward larger fiscal spending, the members say. 'The true significance lies in the perception of unrestrained fiscal discipline,' the members add. The 10-year JGB yield rises 3bps to 1.530%. (
