Komeito Chief Seeks Steps against Demand Drop after Tax Hike

May 22, 2018

Tokyo- Natsuo Yamaguchi, leader of Komeito, the ally of Japan's ruling Liberal Democratic Party, on Monday called for measures to be taken to tackle a drop in demand that is expected to follow the planned consumption tax hike in October 2019.

Raising the consumption tax to 10 pct from 8 pct and keeping the tax rate at the current level for some products after the hike to cushion the impact of the move is "a major responsibility that the government and the ruling camp bear," he said in a speech at a gathering in Tokyo, hosted by the Research Institute of Japan, a Jiji Press affiliate.

Noting that the level of demand is expected to change before and after the tax rate hike, Yamaguchi stressed that "concrete measures to level out demand should be taken."

Regarding LDP parliamentary affairs head Hiroshi Moriyama's recent remark on Prime Minister Shinzo Abe's possible decision to dissolve the House of Representatives, Yamaguchi indicated that he sees no need for Abe to break up the all-important lower chamber of the Diet, the country's parliament, now for a snap election for seeking voters' judgment.

Yamaguchi thus suggested that Komeito does not want an early dissolution of the Lower House.

The Komeito leader again sounded cautious about the idea of clarifying a rationale for the existence of the Self-Defense Forces in the country's constitution, as envisioned by the LDP. Such a constitutional amendment is not necessarily required, he said, noting that "the SDF is already tolerated by a great majority of people and has achieved many things."

On a favoritism scandal over a veterinary medicine school project of Kake Educational Institution, run by a friend of Abe, Yamaguchi urged the prime minister to deeply reflect on his past behavior and act in an appropriate manner going forward.

As to whether he wants to be endorsed to continue serving as Komeito leader at the party's convention in autumn, Yamaguchi said, "I know I must educate young party members and keep in mind the possibility of passing the torch (to one of them), but I also think that various preparations are needed." Jiji Press