News about Japan

[Tom MoodyParticipant]

Japan’s Kishida vows to prioritize economic steps to fight inflation

Japanese Prime Minister Fumio Kishida sought to boost his flagging fortunes by pledging to prioritize an economic package to help combat inflation.

“What I have in my mind right now is one thing: ‘Never miss the flow of change, seize it,'” Kishida said Monday in a policy speech to mark the opening of a parliamentary session. “The No. 1 priority is the economy. I am determined to take unprecedented bold steps.”

Kishida’s support rate has fallen to record lows in various recent polls, and his ruling Liberal Democratic Party lost one of two by-elections held on Sunday. Rising prices have been cited as the top concern of voters as speculation grows that the package might be part of a party plan to hold a snap election in the coming months.

Real wages, a measure that takes inflation into account, fell for the 17th straight month in August — a major drag on support for the prime minister. In response to rising energy prices, Kishida said the government will continue its current subsidies for gasoline, electricity and household gas until next spring.

Kishida last week instructed ruling coalition officials to study the possibility of lowering the income tax to take advantage of a recent increase in tax revenue. “The revenue rise will be returned to the people in a fair and proper manner,” Kishida said Monday, without providing details.

Opposition lawmakers have attacked Kishida’s economic plans. “It’s a campaign tool,” said Jun Azumi of the Constitutional Democratic Party on Friday.

Kishida also pledged to introduce tax incentives to boost investment and the production of strategic goods such as semiconductors and storage batteries.

Pointing to a negative spiral of falling investment and consumption, the prime minister vowed to “take drastic and intensive steps to strengthen supply capacity with a view to a reform period of about three years in order to completely break out of this cycle.”

Kishida also said his government would consider legalizing ride-hailing services for drivers without a taxi license at times and in places taxis are difficult to access such as in tourist hot spots and rural areas.

Despite the taxi industry’s staunch opposition to lifting a ride-hailing ban, rural areas’ rapid population decline and an inbound tourism recovery have highlighted the need for more transit options.

0

0

[Author]

Posts