Japanese Prime Minister Takaichi commits to implementing tax cuts following LDP victory

Japan’s Prime Minister Sanae Takaichi has promised to cut taxes and maintain her cabinet after the Liberal Democratic Party (LDP) secured 316 seats in Sunday’s general election, marking its best result since its founding in 1955.

According to projections by NHK broadcaster, the LDP won a two-thirds majority in the lower house, surpassing its previous record of 300 seats set in 1986 under then-Prime Minister Yasuhiro Nakasone. The Japan Innovation Party secured 36 seats, while the Centrist Reform Alliance managed to retain only 49 of its previously held seats.

Takaichi’s popularity is seen as a key factor behind the LDP’s success, with analysts crediting her leadership for the party’s triumph. In a televised interview with NHK, Takaichi emphasized policies aimed at making Japan strong and prosperous, including reducing consumption taxes.

The governing party had campaigned on suspending the 8 percent food sales tax for two years to ease household living costs. Takaichi stated that most parties support reducing consumption taxes, and she plans to establish a supra-party forum to discuss this issue further.

Takaichi also indicated that she will maintain her cabinet, calling it a “good team”. The head of Japan’s top business lobby, Keidanren, welcomed the result, stating that it will help restore political stability. Other world leaders, including US President Donald Trump and South Korean President Lee Jae Myung, have congratulated Takaichi on her victory.

However, China has expressed concern over Takaichi’s leadership, particularly regarding Japan’s military defense policies. Analysts note that Beijing may view Takaichi’s strong mandate as a threat to its interests in the region.

Source: Al Jazeera