KYODO NEWS




 

Japan's ruling parties agreed Tuesday to include cash handouts for households hit by rising prices in their platforms for this summer's House of Councillors election, senior lawmakers said.

The Constitutional Democratic Party of Japan, the main opposition force, unveiled its election pledges Tuesday, highlighting a proposal to suspend the 8 percent consumption tax on food for at least one year, in sharp contrast with the ruling Liberal Democratic Party, which opposes tax cuts.

Prime Minister Shigeru Ishiba, who leads the LDP, has rejected opposition calls for tax cuts, citing concerns about their impact on Japan's fiscal health, which is the worst among advanced economies.

The LDP and its junior coalition partner, the Komeito party, will finalize details of the handout scheme, including the payment amount and distribution method, the lawmakers said.

Although the coalition is considering using the fiscal 2024 tax revenue surplus to fund the cash handout program, it may face backlash for appearing to use the payouts to boost public support ahead of the key national election, political experts said.

The ruling parties are aiming to secure a majority in the upper house, as they no longer hold more than half the seats in the House of Representatives, or lower house, following their defeat in the October general election.

Masaji Matsuyama, secretary general of the LDP's upper house caucus, said at a news conference that providing cash handouts is "very desirable to swiftly support the lives of people hit by rising prices."

At a separate news conference, Komeito Secretary General Makoto Nishida said it is preferable to distribute the direct payments "within the year."

Earlier this year, the ruling bloc considered introducing a similar scheme that proposed offering cash aid to all residents as part of an economic stimulus package. However, it shelved the unpopular plan.

As a stopgap measure before carrying out the tax cut, the Constitutional Democratic Party of Japan pledged to pay cash handouts worth 20,000 yen ($138) per person.

Party chief Yoshihiko Noda criticized Ishiba's government for failing to address inflation.

"As prices for food, daily necessities, gasoline and rice continue to rise, protecting people's livelihoods will be the biggest issue" in the upcoming upper house poll, Noda said.